**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**

**o**
**      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)                                          |

----

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|                         |                                                                                                                                                      | Page   |
|------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part                I.       | Financial                Information                                                                                                                      |   |
|                         |                                                                                                                                                      |   |
| Item                1.       | Financial                Statements (Unaudited):                                                                                                          |   |
|                         |                                                                                                                                                      |   |
|                         | Consolidated                Balance Sheets as of March 31, 2008 and December 31, 2007                                                                     | 3      |
|                         |                                                                                                                                                      |   |
|                         | Consolidated                Statements of Operations and Comprehensive Income for the Three Months                Ended March 31, 2008 and March 31, 2007 | 4      |
|                         |                                                                                                                                                      |   |
|                         | Consolidated                Statement of Shareholders’ Equity for the Three Months Ended March 31,                2008                              | 5      |
|                         |                                                                                                                                                      |   |
|                         | Consolidated                Statements of Cash Flows for the Three Months Ended March 31, 2008                and                March 31, 2007           | 6      |
|                         |                                                                                                                                                      |   |
|                         | Notes                to Consolidated Financial Statements                                                                                                 | 8      |
|                         |                                                                                                                                                      |   |
| Item                2.       | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                 | 23     |
|                         |                                                                                                                                                      |   |
| Item                3.       | Quantitative                and Qualitative Disclosure about Market Risk                                                                                  | 35     |
|                         |                                                                                                                                                      |   |
| Item                4.       | Controls                and Procedures                                                                                                                    | 36     |
|                         |                                                                                                                                                      |   |
| Part                II.      | Other                Information                                                                                                                          |   |
|                         |                                                                                                                                                      |   |
| Item                6.       | Exhibits                                                                                                                                                  | 37     |
|                         |                                                                                                                                                      |   |
| Signatures                   |                                                                                                                                                      | 38     |
|                         |                                                                                                                                                      |   |
| Exhibit                Index |                                                                                                                                                      | 39     |

----

**Item      1. Financial Information**

**WINTHROP      REALTY TRUST**

**FORM      10-Q - MARCH 31, 2008**

**CONSOLIDATED      BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                   |   | **March 31, 2008** |     | **December 31, 2007** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                             |   |                         |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Investments                in real estate, at cost                                                                                                                                                                                                                                                                     |   |                         |     |                            |   |   |   |
| Land                                                                                                                                                                                                                                                                                                                   |   | $                            | 21,325   |                            | $      | 21,325 |   |
| Buildings                and improvements                                                                                                                                                                                                                                                                              |   |                         | 245,794  |                            |   | 244,965 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         | 267,119  |                            |   | 266,290 |   |
| Less                - accumulated depreciation                                                                                                                                                                                                                                                                         |   |                         | (20,861  | )                               |   | (19,214 | ) |
| Investments                in real estate, net                                                                                                                                                                                                                                                                         |   |                         | 246,258  |                            |   | 247,076 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                               |   |                         | 98,072   |                            |   | 36,654 |   |
| Restricted                cash held in escrows                                                                                                                                                                                                                                                                         |   |                         | 5,215    |                            |   | 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                                                                                                                                                                                                                      |   |                         | 14,869   |                            |   | 12,496 |   |
| Accounts                receivable, net of reserve of $161 and $163, respectively                                                                                                                                                                                                                                      |   |                         | 11,867   |                            |   | 20,835 |   |
| Available                for sale securities                                                                                                                                                                                                                                                                           |   |                         | 878      |                            |   | 51,804 |   |
| Preferred                equity investment                                                                                                                                                                                                                                                                             |   |                         | 56,041   |                            |   | 74,573 |   |
| Equity                investments                                                                                                                                                                                                                                                                                      |   |                         | 177,523  |                            |   | 179,475 |   |
| Lease                intangibles, net                                                                                                                                                                                                                                                                                  |   |                         | 30,541   |                            |   | 31,964 |   |
| Deferred                financing costs, net                                                                                                                                                                                                                                                                           |   |                         | 4,768    |                            |   | 5,309 |   |
| Assets                of discontinued operations                                                                                                                                                                                                                                                                       |   |                         | 1,100    |                            |   | 1,112 |   |
| Other                assets                                                                                                                                                                                                                                                                                            |   |                         | 71       |                            |   | 30 |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                                                                            |   | $                            | 647,203  |                            | $      | 745,447 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                                                        |   |                         |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Mortgage                loans payable                                                                                                                                                                                                                                                                                  |   | $                            | 235,851  |                            | $      | 236,925 |   |
| Repurchase                agreements                                                                                                                                                                                                                                                                                   |   |                         | -        |                            |   | 75,175 |   |
| Series                B-1 Cumulative Convertible Redeemable Preferred Shares of Beneficial                Interest, $25 per share liquidating preference, 3,690,657 and 3,930,657                shares authorized and outstanding at March 31, 2008 and December                31, 2007,                respectively |   |                         | 92,266   |                            |   | 98,266 |   |
| Accounts                payable and accrued liabilities                                                                                                                                                                                                                                                                |   |                         | 9,442    |                            |   | 12,046 |   |
| Dividends                payable                                                                                                                                                                                                                                                                                       |   |                         | 4,417    |                            |   | 16,242 |   |
| Below                market lease intangibles, net                                                                                                                                                                                                                                                                     |   |                         | 4,689    |                            |   | 5,021 |   |
| TOTAL                LIABILITIES                                                                                                                                                                                                                                                                                       |   |                         | 346,665  |                            |   | 443,675 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                                                                                                                                                                                       |   |                         |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| **MINORITY                INTEREST**                                                                                                                                                                                                                                                                                   |   |                         | 9,978    |                            |   | 9,978 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| **SHAREHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                                |   |                         |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Common                Shares of beneficial interest, $1 par, unlimited authorized, 67,946,708                and 66,291,837 outstanding at March 31, 2008 and December 31, 2007,                respectively                                                                                                           |   |                         | 67,947   |                            |   | 66,292 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                              |   |                         | 363,917  |                            |   | 358,145 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                                                    |   |                         | (18,646  | )                               |   | (8,090 | ) |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Accumulated                distributions in excess of net income                                                                                                                                                                                                                                                       |   |                         | (122,658 | )                               |   | (124,553 | ) |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| Total                Shareholders' Equity                                                                                                                                                                                                                                                                              |   |                         | 290,560  |                            |   | 291,794 |   |
|                                                                                                                                                                                                                                                                                                                   |   |                         |     |                            |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                              |   | $                            | 647,203  |                            | $      | 745,447 |   |

----

**WINTHROP      REALTY TRUST**

**FORM      10-Q - MARCH 31, 2008**

**CONSOLIDATED      STATEMENTS OF OPERATIONS AND**

**COMPREHENSIVE      INCOME**

**(Unaudited)**

|   |   | **For                  the Three Months Ended** |
|--------|--------|-------------------------------------------------|
|   |   | **March                  31,**                  |
|   |   | **2008**                                        |   | **2007** |
|   |   |                                            |   |   |

| **Revenue**                                                                                                                                             |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Rents                  and reimbursements                                                                                                               |   | $      | 10,664 |   | $      | 9,547  |   |
| Interest                  and dividends                                                                                                                 |   |   | 533    |   |   | 4,449  |   |
|                                                                                                                                                    |   |   | 11,197 |   |   | 13,996 |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Expenses**                                                                                                                                            |   |   |   |   |   |   |   |
| Property                  operating                                                                                                                     |   |   | 1,867  |   |   | 1,163  |   |
| Real                  estate taxes                                                                                                                      |   |   | 739    |   |   | 420    |   |
| Depreciation                  and amortization                                                                                                          |   |   | 3,065  |   |   | 2,618  |   |
| Interest                                                                                                                                                |   |   | 5,831  |   |   | 7,647  |   |
| Impairment                  loss on available for sale securities                                                                                       |   |   | 100    |   |   | -      |   |
| General                  and administrative                                                                                                             |   |   | 2,071  |   |   | 1,807  |   |
| State                  and local taxes                                                                                                                  |   |   | 124    |   |   | 240    |   |
|                                                                                                                                                    |   |   | 13,797 |   |   | 13,895 |   |
| **Other                  income**                                                                                                                       |   |   |   |   |   |   |   |
| Earnings                  from preferred equity investments                                                                                             |   |   | 2,330  |   |   | 6,150  |   |
| Equity                  in earnings of equity investments                                                                                               |   |   | 3,812  |   |   | 1,592  |   |
| Gain                  on sale of available for sale securities                                                                                          |   |   | 2,029  |   |   | 243    |   |
| Gain                  on sale of mortgage-backed securities available for sale                                                                          |   |   | 454    |   |   | -      |   |
| Interest                  income                                                                                                                        |   |   | 228    |   |   | 1,177  |   |
|                                                                                                                                                    |   |   | 8,853  |   |   | 9,162  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Income                  from continuing operations before minority interest**                                                                         |   |   | 6,253  |   |   | 9,263  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| Minority                  interest                                                                                                                      |   |   | -      |   |   | 613    |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Income                  from continuing operations**                                                                                                  |   |   | 6,253  |   |   | 8,650  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Discontinued                  operations**                                                                                                            |   |   |   |   |   |   |   |
| Income                  from discontinued operations                                                                                                    |   |   | 59     |   |   | 51     |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Net                  income**                                                                                                                         |   | $      | 6,312  |   | $      | 8,701  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Comprehensive                  income**                                                                                                               |   |   |   |   |   |   |   |
| Net                  income                                                                                                                             |   | $      | 6,312  |   | $      | 8,701  |   |
| Change                  in unrealized gain (loss) on available for sale securities arising                  during                  the period          |   |   | 2,023  |   |   | (2,401 | )      |
| Change                  in unrealized gain on mortgage-backed securities available for                  sale                  arising during the period |   |   | 190    |   |   | 603    |   |
| Change                  in unrealized loss on interest rate derivatives arising during                  the                  period                     |   |   | (651   | )      |   | (400   | )      |
| Change                  in unrealized loss from equity investments                                                                                      |   |   | (9,635 | )      |   | -      |   |
| Less                  reclassification adjustment from gains included in net                  income                                                    |   |   | (2,483 | )      |   | (243   | )      |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| Comprehensive                  income (loss)                                                                                                            |   | $      | (4,244 | )      | $      | 6,260  |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Per                  Common Share data - Basic**                                                                                                      |   |   |   |   |   |   |   |
| Income                  from continuing operations                                                                                                      |   | $      | 0.09   |   | $      | 0.12   |   |
| Income                  from discontinued operations                                                                                                    |   |   | -      |   |   | -      |   |
| Net                  income                                                                                                                             |   | $      | 0.09   |   | $      | 0.12   |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Per                  Common Share data - Diluted**                                                                                                    |   |   |   |   |   |   |   |
| Income                  from continuing operations                                                                                                      |   | $      | 0.09   |   | $      | 0.12   |   |
| Income                  from discontinued operations                                                                                                    |   |   | -      |   |   | -      |   |
| Net                  income                                                                                                                             |   | $      | 0.09   |   | $      | 0.12   |   |
|                                                                                                                                                    |   |   |   |   |   |   |   |
| **Basic                  Weighted-Average Common Shares**                                                                                               |   |   | 67,082 |   |   | 65,518 |   |
| **Diluted                  Weighted-Average Common Shares**                                                                                             |   |   | 67,139 |   |   | 65,585 |   |

----

**WINTHROP      REALTY TRUST**

**FORM      10-Q - MARCH 31, 2008**

**CONSOLIDATED      STATEMENT OF SHAREHOLDERS' EQUITY**

**(Unaudited)**

|                                                                                                                                                                                                     |   |                             |   |       |   |                   |   | 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                income                                                                                                                                                                                |   |                             | -      |       |   | -                      |   |            | -       |        |   | 6,312    |   |   | - |   |   | 6,312 |   |
| Dividends                paid or accrued on common shares of beneficial interest ($0.065 per                share)                                                                                       |   |                             | -      |       |   | -                      |   |            | -       |        |   | (4,417   | )      |   | - |   |   | (4,417 | ) |
| Change                in unrealized gain on available for sale securities, net of                reclassification adjustment for amounts included in net                income                           |   |                             | -      |       |   | -                      |   |            | -       |        |   | -        |   |   | (6 | ) |   | (6 | ) |
| 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                                                                                                                                    |   |                             | -      |       |   | -                      |   |            | -       |        |   | -        |   |   | (651 | ) |   | (651 | ) |
| Change                in unrealized loss from equity investments                                                                                                                                         |   |                             | -      |       |   | -                      |   |            | -       |        |   | -        |   |   | (9,635 | ) |   | (9,635 | ) |
| Stock                issued pursuant to dividend reinvestment plan                                                                                                                                       |   |                             | 322    |       |   | 322                    |   |            | 1,309   |        |   | -        |   |   | - |   |   | 1,631 |   |
| Conversion                of Series B-1 preferred shares to common shares                                                                                                                                |   |                             | 1,333  |       |   | 1,333                  |   |            | 4,463   |        |   | -        |   |   | - |   |   | 5,796 |   |
|                                                                                                                                                                                                     |   |                             |   |       |   |                   |   |            |    |        |   |     |   |   |   |   |   |   |   |
| Balance,                March 31, 2008                                                                                                                                                                   |   |                             | 67,947 |       | $      | 67,947                 |   | $               | 363,917 |        | $      | (122,658 | )      | $ | (18,646 | ) | $ | 290,560 |   |

----

**WINTHROP      REALTY TRUST**

**FORM      10-Q - MARCH 31, 2008**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                   |   | **For the Three Months Ended** |    |
|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                                                                                   |   | **March 31**                                  |    |
|                                                                                                                   |   | **2008**                                           |    | **2007** |   |
| **Cash                flows from operating activities**                                                                |   |                                               |    |   |   |   |   |
| Net                income                                                                                              |   | $                                                  | 6,312   |   | $ | 8,701 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities         |   |                                               |    |   |   |   |   |
|  Depreciation                and amortization (including amortization of deferred financing                costs) |   |                                               | 2,021   |   |   | 1,949 |   |
|  Amortization                of lease intangibles                                                                 |   |                                               | 1,473   |   |   | 1,140 |   |
|  Straight-lining                of rental income                                                                  |   |                                               | 225     |   |   | 271 |   |
|  Earnings                of preferred equity investments less than distributions                                  |   |                                               | 116     |   |   | 27 |   |
|  Earnings                in excess of distributions of equity investments                                         |   |                                               | (2,596  | ) |   | (1,592 | ) |
|  Restricted                cash held in escrows                                                                   |   |                                               | 840     |   |   | (662 | ) |
|  Minority                interest                                                                                 |   |                                               | -       |   |   | 613 |   |
|  Gain                on sale of mortgage-backed securities available for sale                                     |   |                                               | (454    | ) |   | - |   |
|  Gain                on sale of available for sale securities                                                     |   |                                               | (2,029  | ) |   | (243 | ) |
|  Impairment                loss                                                                                   |   |                                               | 100     |   |   | - |   |
|  Bad                debt (recovery) expense                                                                       |   |                                               | (2      | ) |   | 3 |   |
|  Interest                receivable on loans                                                                      |   |                                               | (41     | ) |   | (135 | ) |
|  Net                change in accounts receivable                                                                 |   |                                               | 8,745   |   |   | 899 |   |
|  Net                change in accounts payable and accrued liabilities                                            |   |                                               | (3,359  | ) |   | (1,417 | ) |
|  Net                change in other assets                                                                        |   |                                               | (71     | ) |   | 103 |   |
|                                                                                                                   |   |                                               |    |   |   |   |   |
|  Net                cash provided by operating activities                                                         |   |                                               | 11,280  |   |   | 9,657 |   |
|                                                                                                                   |   |                                               |    |   |   |   |   |
| **Cash                flows from investing activities**                                                                |   |                                               |    |   |   |   |   |
| Investments                in real estate                                                                              |   |                                               | (1,065  | ) |   | (8,530 | ) |
| Proceeds                from repayments of mortgage-backed securities available for                sale                |   |                                               | 78,318  |   |   | 8,499 |   |
| Return                of equity on equity investments                                                                  |   |                                               | -       |   |   | 10,000 |   |
| Investment                in equity investments                                                                        |   |                                               | (5,087  | ) |   | (7,000 | ) |
| Proceeds                from preferred equity investments                                                              |   |                                               | 18,416  |   |   | 5,506 |   |
| Purchase                of available for sale securities                                                               |   |                                               | (4,850  | ) |   | (142 | ) |
| Proceeds                from sale of available for sale securities                                                     |   |                                               | 57,699  |   |   | 1,351 |   |
| Increase                in restricted cash held in escrows                                                             |   |                                               | (107    | ) |   | (754 | ) |
| Issuance                and acquisition of loans receivable                                                            |   |                                               | (2,465  | ) |   | (17 | ) |
| Collection                of loans receivable                                                                          |   |                                               | 133     |   |   | - |   |
|                                                                                                                   |   |                                               |    |   |   |   |   |
|  Net                cash provided by investing activities                                                         |   |                                               | 140,992 |   |   | 8,913 |   |

----

**WINTHROP      REALTY TRUST**

**FORM      10-Q - MARCH 31, 2008**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                     |   | **For                the Three Months Ended** |    |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                                                     |   | **March                31,**                  |    |
|                                                                                                     |   | **2008**                                      |    | **2007** |   |
|                                                                                                     |   |                                          |    |   |   |
| **Cash                flows from financing activities**                                                  |   |                                          |    |   |   |   |   |
| Repayment                of borrowings under repurchase agreements                                       |   | $                                             | (75,175 | ) | $ | (7,677 | ) |
| Proceeds                from mortgage loans payable                                                      |   |                                          | 161     |   |   | 5,600 |   |
| Restricted                cash held in escrows                                                           |   |                                          | 30      |   |   | 40 |   |
| Principal                payments of mortgage loans payable                                              |   |                                          | (1,235  | ) |   | (1,028 | ) |
| Payments                of loans payable                                                                 |   |                                          | -       |   |   | (4 | ) |
| Deferred                financing costs                                                                  |   |                                          | (24     | ) |   | (184 | ) |
| Contribution                by minority interests                                                        |   |                                          | -       |   |   | 787 |   |
| Distribution                to minority interests                                                        |   |                                          | -       |   |   | (1,780 | ) |
| Dividends                paid on Common Shares                                                           |   |                                          | (16,242 | ) |   | (7,844 | ) |
| Issuance                of Common Shares through dividend reinvestment plan                              |   |                                          | 1,631   |   |   | 1,200 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Net                cash used in financing activities                                                     |   |                                          | (90,854 | ) |   | (10,890 | ) |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Net                increase in cash and cash equivalents                                                 |   |                                          | 61,418  |   |   | 7,680 |   |
| Cash                and cash equivalents at beginning of period                                          |   |                                          | 36,654  |   |   | 89,463 |   |
| Cash                and cash equivalents at end of period                                                |   | $                                             | 98,072  |   | $ | 97,143 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| **Supplemental                Disclosure of Cash Flow Information**                                      |   |                                          |    |   |   |   |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Interest                paid                                                                             |   | $                                             | 9,237   |   | $ | 7,062 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Taxes                paid                                                                                |   | $                                             | 39      |   | $ | 80 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| **Supplemental                Disclosure of Non-Cash Investing and Financing                Activities** |   |                                          |    |   |   |   |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Dividends                accrued on Common Shares                                                        |   | $                                             | 4,417   |   | $ | 3,933 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Capital                expenditures accrued                                                              |   | $                                             | 254     |   | $ | 8 |   |
|                                                                                                     |   |                                          |    |   |   |   |   |
| Conversion                of Series B-1 Preferred Shares into Common Shares                              |   | $                                             | 5,796   |   | $ | - |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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 MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Earnings      Per Share *
* *

|                                                                                                 |   | Three                Months EndedMarch                31, |   |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                                                                                 |   | 2008                                                      |   | 2007 |   |
| Basic                                                                                                |   |                                                      |   |   |   |   |   |
| Income                from continuing operations                                                     |   | $                                                         | 6,253  |   | $ | 8,650 |   |
| Allocation                of undistributed earnings to Series B-1 Preferred Shares                   |   |                                                      | (339   | ) |   | (988 | ) |
| Income                from discontinued operations                                                   |   |                                                      | 59     |   |   | 51 |   |
|                                                                                                 |   |                                                      |   |   |   |   |   |
| Net                income applicable to Common Shares for earnings per share                purposes |   | $                                                         | 5,973  |   | $ | 7,713 |   |
|                                                                                                 |   |                                                      |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                  |   |                                                      | 67,082 |   |   | 65,518 |   |

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

|                                                                                  |   | Three Months EndedMarch 31, |   |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                  |   | 2008                                       |   | 2007 |   |
| Income                from continuing operations                                      |   | $                                          | 0.09   |   | $ | 0.12 |   |
| Income                from discontinued operations                                    |   |                                       | -      |   |   | - |   |
| Net                income per Common Share                                            |   | $                                          | 0.09   |   | $ | 0.12 |   |
| Diluted                                                                               |   |                                       |   |   |   |   |   |
| Income                from continuing operations                                      |   | $                                          | 6,253  |   | $ | 8,650 |   |
| Allocation                of undistributed earnings to Series B-1 Preferred Shares    |   |                                       | (339   | ) |   | (988 | ) |
| Income                from discontinued operations                                    |   |                                       | 59     |   |   | 51 |   |
|                                                                                  |   |                                       |   |   |   |   |   |
| Net                income applicable to Common Shares for earnings per share purposes |   | $                                          | 5,973  |   | $ | 7,713 |   |
|                                                                                  |   |                                       |   |   |   |   |   |
| Basic                weighted-average Common Shares                                   |   |                                       | 67,082 |   |   | 65,518 |   |
| Convertible                Preferred Shares (1)                                       |   |                                       | -      |   |   | - |   |
| Stock                options                                                          |   |                                       | 57     |   |   | 67 |   |
| Diluted                weighted-average Common Shares                                 |   |                                       | 67,139 |   |   | 65,585 |   |
|                                                                                  |   |                                       |   |   |   |   |   |
| Income                from continuing operations                                      |   | $                                          | 0.09   |   | $ | 0.12 |   |
| Income                from discontinued operations                                    |   |                                       | -      |   |   | - |   |
| Net                income per Common Share                                            |   | $                                          | 0.09   |   | $ | 0.12 |   |

|   | (1) | The                Trust’s Series B-1 Preferred Shares were anti-dilutive for the three                months ended March 31, 2008 and 2007 and are not included in the                weighted                average shares outstanding for the calculation of diluted earnings                per                share. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Fair      Value Measurements” *

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*The      Fair Value Option Financial Assets and Financial Liabilities. *

*Business      Combinations*

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

*Disclosures      about Derivative Instruments and Hedging Activities*

**3.**
**Fair      Value Measurement**

*Fair      Value Measurements *

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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 MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Derivative      Financial Instruments (Continued)*

|                                            |   | Quoted Prices inActive Markets forIdentical Assetsand Liabilities(Level 1) |   | Significant OtherObservableInputs (Level 2) |   | SignificantUnobservableInputs (Level 3) |   | Balance atMarch 31, 2008 |               |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|--------|---------------------------------------------------|--------|-----------------------------------------|--------------------|
|                                            |   |                                                                                                          |   |                                                       |   |                                              |   |                                    |               |
| Cash                equivalents                 |   | $                                                                                                             | 52,861 |                                                       |   |                                              |   | $                                       | $                - |   | $ | 52,861 |   |
| Available                for sale securities    |   | $                                                                                                             | 878    |                                                       | $      | -                                                 |   | $                                       | -                  |   | $ | 878 |   |
|                                            |   |                                                                                                          |   |                                                       |   |                                              |   |                                    |               |   |   |   |   |
| **Liabilities**                                 |   |                                                                                                          |   |                                                       |   |                                              |   |                                    |               |   |   |   |   |
| Derivative                financial instruments |   | $                                                                                                             | -      |                                                       | $      | 787                                               |   | $                                       | -                  |   | $ | 787 |   |

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

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**4.**
**Acquisitions,      Loan Originations, Dispositions and Financings (Continued)**

**5.      **
**Preferred      Equity Investments**

|                                                      |   | As                of         |    | As                of             |   |
|-----------------------------------------------------------|--------|------------------------------|---------|----------------------------------|--------|
|                                                      |   | March                31,2008 |    | December                31, 2007 |   |
|                                                      |   |                         |    |                             |   |
| Condensed                Balance Sheet                    |   |                         |    |                             |   |   |   |
| Investment                in real estate, net             |   | $                            | 161,782 |                             | $      | 168,755 |   |
| Prepaid                expenses and deposits in escrow    |   |                         | 7,655   |                             |   | 8,446 |   |
| Cash                and cash equivalents                  |   |                         | 2,056   |                             |   | 3,290 |   |
| Receivables                and other assets               |   |                         | 31,055  |                             |   | 32,469 |   |
|                                                      |   |                         |    |                             |   |   |   |
| Total                Assets                               |   | $                            | 202,548 |                             | $      | 212,960 |   |
|                                                      |   |                         |    |                             |   |   |   |
| Nonrecourse                mortgage debt                  |   |                         | 275,422 |                             | $      | 278,868 |   |
| Other                liabilities                          |   |                         | 25,989  |                             |   | 28,159 |   |
|                                                      |   |                         |    |                             |   |   |   |
| Total                Liabilities                          |   |                         | 301,411 |                             |   | 307,027 |   |
|                                                      |   |                         |    |                             |   |   |   |
| Partners'                Deficit                          |   |                         | (98,863 | )                                |   | (94,067 | ) |
|                                                      |   |                         |    |                             |   |   |   |
| Total                Liabilities and Partners' Deficit    |   | $                            | 202,548 |                             | $      | 212,960 |   |
|                                                      |   |                         |    |                             |   |   |   |
| On                the Trust's Consolidated Balance Sheet: |   |                         |    |                             |   |   |   |
|  Preferred                Equity Investment (1)      |   | $                            | 56,041  |                             | $      | 74,573 |   |

| (1) | Includes                capitalized acquisition cost of $801 and $812 at March 31, 2008 and                December 31, 2007, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

|                                                                               |   | For the Three Months Ended |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                               |   | March 31,                                 |   | March 31,  |   |
|                                                                               |   | 2008                                           |   | 2007 |   |
|                                                                               |   |                                           |   |   |   |
| Condensed                Statements of Operations                                  |   |                                           |   |   |   |   |   |
| Revenue                                                                            |   | $                                              | 15,497 |   | $ | 13,883 |   |
| Operating                expenses                                                  |   |                                           | (8,119 | ) |   | (6,673 | ) |
| Interest                expense                                                    |   |                                           | (4,191 | ) |   | (3,730 | ) |
| Real                estate taxes                                                   |   |                                           | (2,569 | ) |   | (2,494 | ) |
| Depreciation                and amortization                                       |   |                                           | (3,108 | ) |   | (3,011 | ) |
| Other                expenses, net                                                 |   |                                           | (629   | ) |   | (610 | ) |
| Loss                from continuing operations                                     |   |                                           | (3,119 | ) |   | (2,635 | ) |
| Discontinued                operations                                             |   |                                           |   |   |   |   |   |
| Loss                from discontinued operations                                   |   |                                           | (1,047 | ) |   | (450 | ) |
| Gain                on sale of property                                            |   |                                           | 3,344  |   |   | 26,628 |   |
| Income                from discontinued operations                                 |   |                                           | 2,297  |   |   | 26,178 |   |
|                                                                               |   |                                           |   |   |   |   |   |
| Net                income (loss)                                                   |   | $                                              | (822   | ) | $ | 23,543 |   |
|                                                                               |   |                                           |   |   |   |   |   |
| On                the Trust's Consolidated                                         |   |                                           |   |   |   |   |   |
| Statement                  of Operations andComprehensive                  Income: |   |                                           |   |   |   |   |   |
| Equity                in earnings of Preferred                                     |   |                                           |   |   |   |   |   |
| Equity                Investment                                                   |   | $                                              | 2,330  |   | $ | 6,150 |   |

**6.**
**Equity      Investments**

|                                                   |   | Concord DebtHoldings, LLC |    | Sealy NorthwestAtlanta, LP |   | Sealy AirparkNashville 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         |   |                                | -       |                                 |   | (343                                | )      |                        | (359   | )      |   | (514 | ) |   | (1,216 | ) |
| Equity                in other comprehensive loss      |   |                                | (9,635  | )                                    |   | -                                   |   |                        | -      |   |   | - |   |   | (9,635 | ) |
| Equity                in earnings (loss)               |   |                                | 4,076   |                                 |   | (138                                | )      |                        | (283   | )      |   | 157 |   |   | 3,812 |   |
|                                                   |   |                                |    |                                 |   |                                     |   |                        |   |   |   |   |   |   |   |   |
| Equity                investments, March 31, 2008      |   | $                                   | 154,989 |                                 | $      | 4,274                               |   | $                           | 7,730  |   | $      | 10,530 |   | $ | 177,523 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Concord      Debt Holdings, LLC*

*Accounting      for Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*

|                                                       |   | As                of     |      | As                of        |   |
|------------------------------------------------------------|--------|--------------------------|-----------|-----------------------------|--------|
|                                                       |   | March 31, 2008 |      | December 31, 2007 |   |
|                                                       |   |                     |      |                        |   |
| Condensed                Balance Sheets                    |   |                     |      |                        |   |   |   |
| Cash                and restricted cash                    |   | $                        | 30,188    |                        | $      | 19,094 |   |
| Real                estate debt investments                |   |                     | 908,834   |                        |   | 952,035 |   |
| Available                for sale securities, net          |   |                     | 167,616   |                        |   | 188,073 |   |
| Other                assets                                |   |                     | 11,504    |                        |   | 12,770 |   |
|                                                       |   |                     |      |                        |   |   |   |
| Total                assets                                |   | $                        | 1,118,142 |                        | $      | 1,171,972 |   |
|                                                       |   |                     |      |                        |   |   |   |
| Repurchase                agreements                       |   |                     | 421,685   |                        |   | 472,324 |   |
| Collateralized                debt obligations             |   |                     | 366,650   |                        |   | 376,650 |   |
| Accounts                payable and other liabilities      |   |                     | 19,729    |                        |   | 11,974 |   |
| Minority                interest                           |   |                     | 102       |                        |   | 102 |   |
| Accumulated                other comprehensive loss        |   |                     | (36,050   | )                           |   | (16,780 | ) |
| Members'                capital                            |   |                     | 346,026   |                        |   | 327,702 |   |
|                                                       |   |                     |      |                        |   |   |   |
| Total                liabilities and members' capital      |   | $                        | 1,118,142 |                        | $      | 1,171,972 |   |
|                                                       |   |                     |      |                        |   |   |   |
| On                the Trust's Consolidated Balance Sheets: |   |                     |      |                        |   |   |   |
|  Equity                investment in venture          |   | $                        | 154,989   |                        | $      | 155,461 |   |

|                                                            |   | For the Three Months Ended |    |
|-----------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                            |   | March 31,                                 |    | March 31, |   |
|                                                            |   | 2008                                           |    | 2007 |   |
|                                                            |   |                                           |    |   |   |
| Condensed                Statements of Operations               |   |                                           |    |   |   |   |   |
| Interest                and other income                        |   | $                                              | 20,039  |   | $ | 11,154 |   |
| Interest                expense                                 |   |                                           | (10,853 | ) |   | (6,669 | ) |
|                                                            |   |                                           |    |   |   |   |   |
| Impairment                loss on available for sale securities |   |                                           | (5,378  | ) |   | - |   |
| Gain                on extinguishment of debt                   |   |                                           | 5,150   |   |   | - |   |
| General                and administrative                       |   |                                           | (808    | ) |   | (970 | ) |
|                                                            |   |                                           |    |   |   |   |   |
| Net                income                                       |   | $                                              | 8,150   |   | $ | 3,515 |   |
|                                                            |   |                                           |    |   |   |   |   |
| On                the Trust's Consolidated                      |   |                                           |    |   |   |   |   |
|  Statement                of Operations and                |   |                                           |    |   |   |   |   |
|  Comprehensive                Income:                      |   |                                           |    |   |   |   |   |
|  Equity                in earnings of equity investment    |   | $                                              | 4,076   |   | $ | 1,758 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Concord      Debt Holdings, LLC (Continued)*

*Accounting      for Certain Investments in Debt and Equity Securities *

|                                                                                                                                                                                                                                                                                                                                                    |   |   |    | March 31, 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 3.94% and 5.84%,                respectively. (2) (4) (5)    |   | $      | 350,000 |                     | $      | 268,670                     |   | $ | 370,468 |   | $ | 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 3.55%                and                5.49%, respectively. (2) (4) |   |   | 150,000 |                     |   | 41,172                      |   |   | 57,552 |   |   | 48,710 |   |   | 82,258 |   |
|                                                                                                                                                                                                                                                                                                                                                    |   |   |    |                     |   |                        |   |   |   |   |   |   |   |   |   |   |
| 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 3.82% and 5.85%, respectively. (1)                                                                            |   |   | -       |                     |   | 59,613                      |   |   | 70,451 |   |   | 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 3.59% 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 3.61%                and 5.95%, respectively. (1) (3)                                                                                             |   |   | -       |                     |   | 16,214                      |   |   | 25,416 |   |   | 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                                                                                                         |   |   | 100,000 |                     |   | -                           |   |   | - |   |   | - |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                    |   |   |    |                     |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                    |   | $      | 600,000 |                     | $      | 421,685                     |   | $ | 575,339 |   | $ | 472,324 |   | $ | 646,062 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Concord      Debt Holdings, LLC (Continued)*

| (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 advance will be made                except, if at all, in connection with loans 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 at March 31, 2008 on the Column repurchase                facility was 3.94% and on the Bear Stearns repurchase facility was                3.55%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Concord                may extend for two additional                years. |
|-----|----------------------------------------------------------------------------|

*Collateralized      Debt Obligations*

|                                                                                                                                                                                                                                                                                                                                                        |   | March 31, 2008 |    | December 31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                        |   | Debt                     |    | Collateral                  |   | Debt |   | Collateral |   |
|                                                                                                                                                                                                                                                                                                                                                        |   | Carrying Value      |    | Carrying Value         |   | Carrying Value |   | Carrying Value |   |
| CDO I –                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                3.10% and 5.37%, respectively |   | $                        | 366,650 |                        | $      | 464,970 |   | $ | 376,650 |   | $ | 464,601 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**7.**
**Debt**

|                                                                        |   |     |                    | Spread Over |   | Interest Rate as of |   | Balance as of  |   | Balance as of     |   |
|-----------------------------------------------------------------------------|--------|----------|-------------------------|------------------|--------|------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                                                        |   | Maturity |                    | LIBOR/Prime      |   | March 31, 2008           |   | March 31, 2008 |   | December 31, 2007 |   |
| Mortgage                Loans Payable Fixed                  Interest Rate: |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
|                                                                        |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
| Amherst,                NY                                                  |   |     | October 2013       |             |   | —                            |   |                     | 5.65   | %                      | $      | 17,186 |   | $ | 17,276 |   |
| Indianapolis,                IN                                             |   |     | April 2015         |             |   | —                            |   |                     | 5.82   | %                           |   | 4,432 |   |   | 4,447 |   |
| Houston,                TX                                                  |   |     | April 2016         |             |   | —                            |   |                     | 6.49   | %                           |   | 69,143 |   |   | 69,801 |   |
| Andover,                MA                                                  |   |     | February 2011      |             |   | —                            |   |                     | 6.60   | %                           |   | 6,475 |   |   | 6,503 |   |
| S.                Burlington, VT                                            |   |     | February 2011      |             |   | —                            |   |                     | 6.60   | %                           |   | 2,775 |   |   | 2,787 |   |
| Chicago,                IL                                                  |   |     | March 2016         |             |   | —                            |   |                     | 5.75   | %                           |   | 21,581 |   |   | 21,600 |   |
| Lisle,                IL                                                    |   |     | June 2016          |             |   | —                            |   |                     | 6.26   | %                           |   | 24,600 |   |   | 24,600 |   |
| Lisle,                IL                                                    |   |     | March 2017         |             |   | —                            |   |                     | 5.55   | %                           |   | 5,600 |   |   | 5,600 |   |
| Kansas                City, KS                                              |   |     | June 2012          |             |   | —                            |   |                     | 7.04   | %                           |   | 6,054 |   |   | 5,893 |   |
| Orlando,                FL                                                  |   |     | July 2017          |             |   | —                            |   |                     | 6.40   | %                           |   | 39,927 |   |   | 40,034 |   |
|                                                                        |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
| Variable                Interest Rate:                                      |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
|                                                                        |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
| Various                                                                     |   |     | June 2009 (2) |             |   | LIBOR + 1.75%            |   |                     | (1     | )                           |   | 28,578 |   |   | 28,884 |   |
| Chicago,                IL                                                  |   |     | March 2009         |             |   | Prime + 0.50%            |   |                     | 8.75   | %                           |   | 9,500 |   |   | 9,500 |   |
|                                                                        |   |     |                    |             |   |                               |   |                     |   |                        |   |   |   |   |   |   |
| Total                Mortgage Loans Payable                                 |   |     |                    |             |   |                               |   |                     |   |                        | $      | 235,851 |   | $ | 236,925 |   |

|   | (1) | As                a result of the Trust entering into an interest rate swap agreement                in the                notional amount of $26,000,000, the Trust has effectively converted                the                floating interest rate to a fixed rate of 5.80% through December,                2009.                The remaining principal amount of $2,578,000 remains variable at                LIBOR                plus 1.75% (which equated to 6.50% at March 31,                2008). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**8.**
**Revolving      Line of Credit**

**9.**
**Hedge      Instruments**

| Maturity                     |   | SwapRate |   | NotionalAmount ofHedge |   | Cost ofHedge        |   | EstimatedFair Value/CarryingValue |   | UnrealizedLoss onSettledSwap |   | Gross UnrealizedLoss For the ThreeMonths EndedMarch 31, 2008 |   |
|------------------------------|--------|----------|--------|-----------------------------|--------|--------------------------|--------|----------------------------------------|--------|-----------------------------------|--------|-------------------------------------------------------------------------------------------------|--------|
|                         |   |     |   |                        |   |                     |   |                                   |   |                              |   |                                                                                            |   |
| December                2009 |   |     | 4.05   | %                           | $      | 26,000                (1 | )      | $                                      | -      |                              | $      | (787                                                                                            | )      | $ | (38 | ) | $ | (621 | ) |

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

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**9.**
**Hedge      Instruments (Continued)**

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

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

|                                   |   | Three Months Ended |   |
|----------------------------------------|--------|------------------------------|--------|
|                                   |   | 2008                         |   | 2007 |   |
|                                   |   |                         |   |   |   |
| Asset                Management (1)    |   | $                            | 1,323  | (3)  | $ | 1,166 | (4) |
| Property                Management (2) |   |                         | 61     |   |   | 62 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

**12. Business      Segments**

|                                           |   | March                31, |    | December                31, |   |
|------------------------------------------------|--------|--------------------------|---------|-----------------------------|--------|
|                                           |   | 2008                     |    | 2007                        |   |
| **Identifiable                Assets**         |   |                     |    |                        |   |   |   |
| Operating                Properties            |   | $                        | 290,227 |                        | $      | 293,241 |   |
| Loan                Assets and Loan Securities |   |                     | 225,898 |                        |   | 320,671 |   |
| REIT                Equity Interests           |   |                     | 11,408  |                        |   | 71,353 |   |
| Other                (1)                       |   |                     | 119,670 |                        |   | 60,182 |   |
| **Total                Assets**                |   | $                        | 647,203 |                        | $      | 745,447 |   |

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q MARCH 31, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

**Business      Segments (in thousands)**

|                                                                      |   | For the Three Months Ended |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                      |   | March 31,                                 |   | March 31, |   |
|                                                                      |   | 2008                                           |   | 2007 |   |
| **Operating                Properties**                                   |   |                                           |   |   |   |   |   |
| Rents                and reimbursements                                   |   | $                                              | 10,664 |   | $ | 9,547 |   |
| Operating                expenses                                         |   |                                           | (1,867 | ) |   | (1,163 | ) |
| Real                estate taxes                                          |   |                                           | (739   | ) |   | (420 | ) |
| Equity                in loss of Sealy Northwest Atlanta, L.P.            |   |                                           | (138   | ) |   | (166 | ) |
| Equity                in loss of Sealy Airpark Nashville L.P.             |   |                                           | (283   | ) |   | - |   |
| Net                operating income                                       |   |                                           | 7,637  |   |   | 7,798 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Loan                Assets and Loan Securities**                        |   |                                           |   |   |   |   |   |
| Interest                                                                  |   |                                           | 506    |   |   | 3,136 |   |
| Equity                in earnings of preferred equity investment          |   |                                           | 2,330  |   |   | 6,150 |   |
| Equity                in earnings of Concord Debt Holdings, LLC           |   |                                           | 4,076  |   |   | 1,758 |   |
| Gain                on sale of mortgage-backed securities                 |   |                                           | 454    |   |   | - |   |
| Net                operating income                                       |   |                                           | 7,366  |   |   | 11,044 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **REIT                Equity Interests**                                  |   |                                           |   |   |   |   |   |
| Dividends                                                                 |   |                                           | 27     |   |   | 1,313 |   |
| Gain                on sale of real estate securities                     |   |                                           | 2,029  |   |   | 243 |   |
| Equity                in earnings of Lex-Win Acquisition, LLC             |   |                                           | 157    |   |   | - |   |
| Impairment                loss on available for sale securities           |   |                                           | (100   | ) |   | - |   |
| Net                operating income                                       |   |                                           | 2,113  |   |   | 1,556 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Net                Operating Income**                                   |   |                                           | 17,116 |   |   | 20,398 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Less –                Depreciation and Amortization**        |   |                                           | 3,065  |   |   | 2,618 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Less –                Interest Expense**                     |   |                                           |   |   |   |   |   |
| Operating                Properties                                       |   |                                           | 3,783  |   |   | 3,529 |   |
| Loan                assets and loan securities                            |   |                                           | 206    |   |   | 2,176 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Corporate                Income (Expense)**                             |   |                                           |   |   |   |   |   |
| Interest                income                                            |   |                                           | 228    |   |   | 1,177 |   |
| Interest                expense                                           |   |                                           | (1,842 | ) |   | (1,942 | ) |
| General                and administrative (1)                             |   |                                           | (2,071 | ) |   | (1,807 | ) |
| State                and local taxes                                      |   |                                           | (124   | ) |   | (240 | ) |
|                                                                      |   |                                           |   |   |   |   |   |
|                                                                      |   |                                           |   |   |   |   |   |
| Income                from continuing operations before minority interest |   |                                           | 6,253  |   |   | 9,263 |   |
| Minority                interest                                          |   |                                           | -      |   |   | (613 | ) |
| Income                from continuing operations                          |   |                                           | 6,253  |   |   | 8,650 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| Income                from discontinued operations                        |   |                                           | 59     |   |   | 51 |   |
|                                                                      |   |                                           |   |   |   |   |   |
| **Net                Income**                                             |   | $                                              | 6,312  |   | $ | 8,701 |   |
| **Capital                Expenditures**                                   |   |                                           |   |   |   |   |   |
| Operating                properties                                       |   | $                                              | 829    |   | $ | 709 |   |

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

**13.**
**Subsequent      Event**

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

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

**Overview**

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|                                                            |   | For                  the Three Months Ended |       |
|-----------------------------------------------------------------|--------|---------------------------------------------|------------|
|                                                            |   | March 31, 2008                    |       | March 31, 2007 |   |
|                                                            |   |                                        |       |   |   |
| Net                  income                                     |   | $                                           | 6,312,000  |   | $ | 8,701,000 |   |
|                                                            |   |                                        |       |   |   |   |   |
| Net                  income per Common Share, basic             |   | $                                           | 0.09       |   | $ | 0.12 |   |
|                                                            |   |                                        |       |   |   |   |   |
| Net                  income per Common Share, diluted           |   | $                                           | 0.09       |   | $ | 0.12 |   |
|                                                            |   |                                        |       |   |   |   |   |
| Net                  cash flow provided by operating activities |   | $                                           | 11,280,000 |   | $ | 9,657,000 |   |

|                                            |   | March 31, 2008 |        | December 31, 2007 |   |
|-------------------------------------------------|--------|--------------------------|-------------|-----------------------------|--------|
|                                            |   |                     |        |                        |   |
| Total                assets                     |   | $                        | 647,203,000 |                        | $      | 745,447,000 |   |
|                                            |   |                     |        |                        |   |   |   |
| Total                shareholders’ equity |   | $                        | 290,560,000 |                        | $      | 291,794,000 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|   | · | On                January 28, 2008, we sold all of our mortgage-backed securities available                for sale, resulting in a gain on sale of $454,000 and the repayment                of the                then outstanding balance of the repurchase agreements for which the                securities had been pledged as                collateral. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                March 20, 2008, one of the properties in the Marc Realty portfolio,                999                East Touhy, Chicago, Illinois, in which we held a 7.65% convertible                mezzanine loan and a preferred interest, was sold to an unaffiliated                third                party. We received $1,706,000, exclusive of interest, on our original                investment of $736,000. We recognized additional equity income of                $959,000                with respect to this sale. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                March 25, 2008, we sold all of our 3,500,000 common shares held in                Lexington Realty Trust in a block trade for a net purchase price                of                approximately $52,849,000. We recognized a gain of approximately                $2,029,000 with respect to this                transaction. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                March 28, 2008, one of the properties in the Marc Realty portfolio,                180                North Michigan, Chicago, Illinois, satisfied their first mortgage                bridge                loan to the Trust in the amount of $17,459,000. We had accounted                for this                investment as a preferred equity                investment. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

**Critical      Accounting Policies and Estimates**

**Recently      Issued Accounting Standards **

**Results      of Operations **

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**Results      of Operations – Three Months Ended March 31, 2008 Versus March 31, 2007**

*Net      Earnings *

*Operating      Properties *

|   | · | rental                income increased by $1,117,000 to $10,664,000 due to $1,154,000 from                operating properties acquired during 2007 and a decrease of $37,000                from                operating properties held for both periods. Average occupancy at                our                commercial properties was 96.4% for the three months ended March                31, 2008                compared to 96.0% for the three months ended March 31, 2007. The                primary                changes in rental income related to our new properties are as                follows: |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|
|   | - | $238,000                increase at Creekwood Apartments, which was acquired on March 29,                2007 |
|--------|---|---------------------------------------------------------------------------------------------------------------|

|   | - | $916,000                of rental revenue from our River City property which we acquired                in                foreclosure on October 2, 2007 |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |   |
|--------|--------|--------|
|   | · | operating                expenses increased by $704,000 to $1,867,000 due to $586,000 of expenses                from operating properties acquired during 2007 and an increase of                $118,000                (approximately 10%) from operating properties held for both periods.                The                primary changes in operating expenses at our properties held for                both                periods resulted from increased snow removal costs at our Chicago,                Illinois properties. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | real                estate tax expense increased by $319,000 to $739,000 due to $246,000                of                expenses from operating properties acquired during 2007 and an increase                of                $73,000 (approximately 17%) from operating properties held for both                periods. The primary changes in real estate tax expense at our properties                held for both periods resulted from an increased assessment at our                Chicago, Illinois (Ontario)                property. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Although                both our investment in Sealy Northwest Atlanta, L.P., acquired in                December                2006, and Sealy Airpark Nashville, acquired in April 2007, generated                positive cash flow, we recognized equity in loss of $421,000 for                the three                months ended March 31, 2008 as compared to $166,000 for the three                months                ended March 31, 2007. The losses are a result of depreciation and                amortization exceeding net operating income for these                properties. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                expense related to our operating properties increased by $254,000                to                $3,783,000 for the three months ended March 31, 2008 compared to                $3,529,000 for the three months ended March 31, 2007. Interest expense                related to operating properties acquired during 2007 was $272,000                and                interest expense related to properties held for both periods decreased                by                $18,000. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | depreciation                and amortization expense relating to our operating properties increased                by                $447,000 to $3,065,000 for the three months ended March 31, 2008                compared                to $2,618,000 for the three months ended March 31, 2007. Depreciation                and                amortization expense related to operating properties acquired during                2007                was $289,000 and depreciation and amortization expense related to                operating properties held for both periods increased by $158,000. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Loan      Assets and Loan Securities*

|   | · | earnings                from preferred equity investment in the Marc Realty properties decreased                by $3,820,000 to $2,330,000 for the three months ended March 31,                2008                compared to $6,150,000 for the three months ended March 31, 2007.                The                decrease in earnings was primarily a result of receiving lower                distributions on our equity interests. In 2008 we received an equity                distribution of $959,000 as compared to an equity distribution of                $4,833,000 received in 2007. These distributions were the result                of                individual property sales in each quarter |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|   | · | earnings                from equity investment in Concord increased by $2,318,000 to $4,076,000                for the three months ended March 31, 2008 as compared to $1,758,000                for                the three months ended March 31, 2007. The increase is due primarily                to an                increase in net interest earnings of $4,701,000 to $9,186,000 for                the                three months ended March 31, 2008 compared to $4,485,000 for the                period                ended March 31, 2007 as a result of the significant investment activity                during the first nine months of 2007 and a gain on extinguishment                of debt                of $5,185,000 relating to the acquisition of two classes of securities                issued by CDO-1 with a face value of $10,000,000 for $4,850,000,                which                securities were originally acquired by us and then sold to Concord,                both                of which occurred in March 2008. These increases were partially offset                by                a $5,378,000 impairment charge taken during the three months ended                March                31, 2008 as described in Item 1. Financial Statements - Note                6 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                income from our loan assets and loan securities decreased by $2,630,000                to                $506,000 for the three months ended March 31, 2008 compared to the                three                months ended March 31, 2007. The decrease resulted                from: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | interest                  income on the Toy Building loan, which was fully satisfied in May                  2007,                  decreased by $1,622,000 |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | interest                  income from our River City - Land loan, which was fully satisfied                  in                  October 2007, decreased by $102,000 |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | interest                  income from our mortgage-backed securities, which we sold in February                  2008, decreased by $1,051,000 |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | gain                on sale of mortgage-backed securities of $454,000 recognized in February                2008 as a result of the liquidation of those                securities |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $624,000                decrease related to the borrowing collateralized by our Toy Building                Loan                which was fully satisfied in May                2007 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $1,065,000                decrease on our repurchase agreements which were repaid in February                2008 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | $199,000                decrease related to the borrowing collateralized by our River                City-Commercial Loan which was converted to our operating properties                segment in October 2007 as a result of our acquiring the underlying                property through a foreclosure sale |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | $78,000                decrease related to the borrowing collateralized by our River City-Land                Loan which was repaid in October                2007 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*REIT      Equity Interests*

*Corporate      Activities*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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. |
|--------|--------|------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

*Cash      Flows *

*Equity      Investment in Joint Venture*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

*Dividends      *

**Off-Balance      Sheet Investments**

**Concord      Debt Holdings**

*Accounting      for Certain Investments in Debt and Equity Securities *

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

| CDO Loan Assets and Loan Securities March 31, 2008 |   | CDO NotesMarch 31, 2008                   |    |
|--------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|---------|
| Date Closed                                                                           |   | Par Value of CDO Collateral (3) |    |  Weighted Average Interest Rate |   | Weighted Average Life (years) |   | Outstanding CDO Notes (1) |   | WeightedAverageInterestRate |   | Stated Maturity |   | Equity Value (2) |   |
|                                                                                       |   |                                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |
| 12/21/06                                                                                   |   | $                                                        | 464,970 |   |   | 5.57 | % |   | 4.13 |   | $ | 366,650 |   |   | 3.10 | % |   | 12/2016 |   | $ | 98,350 |   |

| (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 $338,281 and loan securities with                a par                value of $126,689. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 |   |
|--------------------------------------------------------------------|--------|-------------------------------|---------|----------------|--------|----------------------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                               |   | (In                thousands) |    |
|                                                               |   |                          |    |           |   |                                         |   |                                     |   |                                                              |   |
| Whole                loans, floating rate                          |   | $                             | 20,000  |           | $      | 20,000                                       |   |                                     | 4.30   | %                                                                 |   | - |   |   | 195                bps |   |
| Whole                loans, fixed rate                             |   |                          | 44,794  |           |   | 44,900                                       |   |                                     | 9.66   | %                                                                 |   | 6.45 | % |   | - |   |
| Subordinate                interests in whole loans, floating rate |   |                          | 108,784 |           |   | 108,864                                      |   |                                     | 23.41  | %                                                                 |   | - |   |   | 292                bps |   |
| Subordinate                interests in whole loans, fixed rate    |   |                          | 24,688  |           |   | 27,576                                       |   |                                     | 5.93   | %                                                                 |   | 7.47 | % |   | - |   |
| Mezzanine                loans, floating rate                      |   |                          | 81,436  |           |   | 81,410                                       |   |                                     | 17.51  | %                                                                 |   | - |   |   | 218                bps |   |
|                                                               |   |                          |    |           |   |                                         |   |                                     |   |                                                              |   |   |   |   |   |   |
| Mezzanine                loans, fixed rate                         |   |                          | 53,459  |           |   | 55,531                                       |   |                                     | 11.94  | %                                                                 |   | 7.47 | % |   | - |   |
|                                                               |   |                          |    |           |   |                                         |   |                                     |   |                                                              |   |   |   |   |   |   |
| Loan                securities, floating rate                      |   |                          | 93,926  |           |   | 104,225                                      |   |                                     | 22.42  | %                                                                 |   | - |   |   | 195                bps |   |
| Loan                securities, fixed rate                         |   |                          | 16,138  |           |   | 22,464                                       |   |                                     | 4.83   | %                                                                 |   | 5.97 | % |   | - |   |
| Total/Average                                                      |   | $                             | 443,225 |           | $      | 464,970                                      |   |                                     | 100.00 | %                                                                 |   | 6.94 | % |   | 228                bps |   |

|  | (1) | Net                of unamortized fees and discounts of                $7,311,000. |
|--|-----|------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

| Year                  of Maturity |   | Number of Loan Assets Maturing |   | Carrying Value(in thousands) |   |  % of Total |   |
|-----------------------------------|--------|----------------------------------------------------|--------|----------------------------------------|--------|----------------------------|--------|
|                              |   |                                               |   |                                   |   |                       |   |
| 2008                              |   |                                               | 7      |                                   | $      | 140,217                    |   |   | 42.09 | % |
| 2009                              |   |                                               | 2      |                                   |   | 34,587                     |   |   | 10.38 | % |
| 2010                              |   |                                               | 4      |                                   |   | 46,565                     |   |   | 13.98 | % |
| 2011                              |   |                                               | 1      |                                   |   | 20,900                     |   |   | 6.27 | % |
| 2012                              |   |                                               | 1      |                                   |   | 5,024                      |   |   | 1.51 | % |
| Thereafter                        |   |                                               | 7      |                                   |   | 85,868                     |   |   | 25.77 | % |
| Total                             |   |                                               | 22     |                                   | $      | 333,161                    |   |   | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Description      |   | Par Value |    | Amortized Cost |   | Gross Unrealized Gain (Loss) |   | Impairment Loss |    | Carrying Value |   |
|------------------------------|--------|----------------|---------|---------------------|--------|---------------------------------------------|--------|----------------------|---------|---------------------|--------|
|                         |   |           |    |                |   |                                        |   |                 |    |                |   |
| Floating                rate |   | $              | 104,225 |                | $      | 104,103                                     |   | $                    | (10,177 | )                   | $      | - |   | $ | 93,926 |   |
| Fixed                rate    |   |           | 22,464  |                |   | 18,794                                      |   |                 | (977    | )                   |   | (1,679 | ) |   | 16,138 |   |
| Total                        |   | $              | 126,689 |                | $      | 122,897                                     |   | $                    | (11,154 | )                   | $      | (1,679 | ) | $ | 110,064 |   |

| Rating |   | Par Value                |    | Percentage |   |
|--------|--------|-------------------------------|---------|------------|--------|
|   |   | (in                thousands) |    |       |   |
|   |   |                          |    |       |   |
| BBB+   |   | $                             | 9,000   |       |   | 7.10 | % |
| BBB    |   |                          | 13,614  |       |   | 10.75 | % |
| BBB-   |   |                          | 81,575  |       |   | 64.39 | % |
| BB+    |   |                          | 10,000  |       |   | 7.89 | % |
| BB     |   |                          | 7,000   |       |   | 5.53 | % |
| B-     |   |                          | 5,500   |       |   | 4.34 | % |
| Total  |   | $                             | 126,689 |       |   | 100.00 | % |

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|                                                               |   |  Carrying Value (1) |    | Par Value |   | Allocation by Investment Type |   | Fixed Rate: Average Yield |   | Floating Rate: Average Spread over LIBOR  |   |
|--------------------------------------------------------------------|--------|------------------------------------|---------|----------------|--------|----------------------------------------------|--------|------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                                               |   |                               |    |           |   |                                         |   |                                     |   |                                                                    |   |
| Whole                loans, floating rate                          |   | $                                  | 136,660 |           | $      | 136,660                                      |   |                                     | 20.54  | %                                                                       |   | - |   |   | 233                bps |   |
| Whole                loans, fixed rate                             |   |                               | 6,300   |           |   | 6,300                                        |   |                                     | 0.95   | %                                                                       |   | 6.40 | % |   | - |   |
| Subordinate                interests in whole loans, floating rate |   |                               | 159,826 |           |   | 160,493                                      |   |                                     | 24.13  | %                                                                       |   | - |   |   | 214                bps |   |
| Subordinate                interests in whole loans, fixed rate    |   |                               | 14,218  |           |   | 15,750                                       |   |                                     | 2.37   | %                                                                       |   | 8.63 | % |   | - |   |
| Mezzanine                loans, floating rate                      |   |                               | 186,026 |           |   | 190,717                                      |   |                                     | 28.67  | %                                                                       |   | - |   |   | 215                bps |   |
|                                                               |   |                               |    |           |   |                                         |   |                                     |   |                                                                    |   |   |   |   |   |   |
| Mezzanine                loans, fixed rate                         |   |                               | 72,643  |           |   | 76,224                                       |   |                                     | 11.46  | %                                                                       |   | 6.89 | % |   | - |   |
|                                                               |   |                               |    |           |   |                                         |   |                                     |   |                                                                    |   |   |   |   |   |   |
| Loan                securities, floating rate                      |   |                               | 57,552  |           |   | 79,100                                       |   |                                     | 11.88  | %                                                                       |   | - |   |   | 140                bps |   |
| Total/Average                                                      |   | $                                  | 633,225 |           | $      | 665,244                                      |   |                                     | 100.00 | %                                                                       |   | 7.14 | % |   | 204                bps |   |

| (1) | Net                of unamortized fees and discounts of $10,689,000 and unfunded commitments                of $20,923,000. |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

|  Year                of Maturity |   | Number of Loan Assets Maturing |   | Carrying Value(in thousands) |   |  % of Total |   |
|---------------------------------------|--------|----------------------------------------------------|--------|----------------------------------------|--------|----------------------------|--------|
|                                  |   |                                               |   |                                   |   |                       |   |
| 2008                                  |   |                                               | 6      |                                   | $      | 129,540                    |   |   | 22.50 | % |
| 2009                                  |   |                                               | 12     |                                   |   | 227,881                    |   |   | 39.59 | % |
| 2010                                  |   |                                               | 3      |                                   |   | 82,327                     |   |   | 14.30 | % |
| 2011                                  |   |                                               | 1      |                                   |   | 6,300                      |   |   | 1.09 | % |
| 2012                                  |   |                                               | 3      |                                   |   | 72,994                     |   |   | 12.68 | % |
| Thereafter                            |   |                                               | 7      |                                   |   | 56,631                     |   |   | 9.84 | % |
| Total                                 |   |                                               | 32     |                                   | $      | 575,673                    |   |   | 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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|  Description            |   | Par Value |   | Amortized Cost |   | Gross Unrealized Gain (Loss) |   | Realized Loss |   | Carrying Value |   |
|------------------------------|--------|----------------|--------|---------------------|--------|---------------------------------------------|--------|--------------------|--------|---------------------|--------|
|                         |   |           |   |                |   |                                        |   |               |   |                |   |
| Floating                rate |   | $              | 79,100 |                | $      | 69,455                                      |   | $                  | (8,204 | )                   | $      | (3,699 | ) | $ | 57,552 |   |
| Total                        |   | $              | 79,100 |                | $      | 69,455                                      |   | $                  | (8,204 | )                   | $      | (3,699 | ) | $ | 57,552 |   |

| Rating |   | Par                Value |   | Percentage |   |
|--------|--------|--------------------------|--------|------------|--------|
|   |   |                     |   |       |   |
| AA-    |   | $                        | 1,381  |       |   | 1.75 | % |
| A-     |   |                     | 3,242  |       |   | 4.10 | % |
| BBB+   |   |                     | 25,094 |       |   | 31.72 | % |
| BBB    |   |                     | 8,527  |       |   | 10.78 | % |
| BBB-   |   |                     | 40,856 |       |   | 51.65 | % |
| Total  |   | $                        | 79,100 |       |   | 100.00 | % |

| Industry                 |   | % of Par Value |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   |                          |   |
| Hospitality              |   |                          | 44.60  | % |
| Office                   |   |                          | 42.57  | % |
| Mixed                Use |   |                          | 5.72   | % |
| Retail                   |   |                          | -      |   |
| Industrial               |   |                          | 0.26   | % |
| Multi-family             |   |                          | 6.85   | % |
|                     |   |                          | 100.00 | % |

**Marc      Realty **

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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) |   |                           | (8,776 | ) |   | (5,851 | ) |   | (2,925 | ) |   | 2,925 |   |   | 5,851 |   |   | 8,776 |   |
| Minority                partners share                                                                                           |   |                           | 114    |   |   | 76 |   |   | 38 |   |   | (38 | ) |   | (76 | ) |   | (114 | ) |
| Proforma                (increase) decrease in net income                                                                        |   | $                              | (9,024 | ) | $ | (6,017 | ) | $ | (3,008 | ) | $ | 3,008 |   | $ | 6,017 |   | $ | 9,024 |   |

| (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 MARCH 31, 2008**

**ITEM      4.** **CONTROLS      AND PROCEDURES**

**Other      Matters**

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

**PART      II. OTHER INFORMATION**

**ITEM      6.**
**EXHIBITS**

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

|                             | Winthrop                Realty Trust |
|----------------------------------|--------------------------------------|
|                             |                                 |   |
| Date:                May 9, 2008 | By:                                  | /s/                Michael L. Ashner |
|                             |                                 | Michael                L. Ashner |
|                             |                                 | Chief                Executive Officer |
|                             |                                 |   |
| Date:                May 9, 2008 | By:                                  | /s/                Thomas C. Staples |
|                             |                                 | Thomas                C. Staples |
|                             |                                 | Chief                Financial Officer |

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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 MARCH 31, 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.                                                                                                                                                            |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 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.                                                                                                                                                                                    |   | -      |

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 2008**

| 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  |   | Amended                and Restated Limited Liability Company Agreement of Concord Debt                Holdings                LLC, dated September 21, 2007, among The Lexington Master Limited                Partnership, WRT Realty, L.P. and WRP Management LLC (the “Concord                Agreement”) - Incorporated by reference to Exhibit 10.1 to the Trust’s                Form 8-K filed September 27, 2007 |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
| 10.29  |   | Amendment                No. 1 to Concord Agreement, dated January 1, 2008 - Incorporated                by                reference to Exhibit 10.1 to the Trust’s Form 8-K filed January 8,                2008                                                                                                                                                                                                                     |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
| 10.30  |   | 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.                                                                                                                                                                                                |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |
| 10.31  |   | 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.                                                                                                                                                      |   | -      |

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**WINTHROP      REALTY TRUST **

**FORM      10-Q MARCH 31, 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.                 |   | *      |

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