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**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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| Large                accelerated filer o                          |   | Accelerated                filer   x  |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------|
| Non-accelerated                filer  o                           |   | Smaller                reporting company  o     |
| (Do                not check if a smaller reporting                company) |

----

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|                         |                                                                                                                                                                                      | Page   |
|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part                I.       | Financial                Information                                                                                                                                                      |   |
|                         |                                                                                                                                                                                      |   |
| Item                1.       | Financial                Statements (Unaudited):                                                                                                                                          |   |
|                         |                                                                                                                                                                                      |   |
|                         | Consolidated                Balance Sheets as of September 30, 2008 and December 31,                2007                                                                                  | 3      |
|                         |                                                                                                                                                                                      |   |
|                         | Consolidated                Statements of Operations and Comprehensive Income for the Three and                Nine                Months Ended September 30, 2008 and September 30, 2007 | 4      |
|                         |                                                                                                                                                                                      |   |
|                         | Consolidated                Statement of Shareholders’ Equity for the Nine Months Ended September 30,                2008                                                           | 5      |
|                         |                                                                                                                                                                                      |   |
|                         | Consolidated                Statements of Cash Flows for the Nine Months Ended September 30,                2008 and                September 30, 2007                                    | 6      |
|                         |                                                                                                                                                                                      |   |
|                         | Notes                to Consolidated Financial Statements                                                                                                                                 | 8      |
|                         |                                                                                                                                                                                      |   |
| Item                2.       | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                             | 28     |
|                         |                                                                                                                                                                                      |   |
| Item                3.       | Quantitative                and Qualitative Disclosure about Market Risk                                                                                                                  | 50     |
|                         |                                                                                                                                                                                      |   |
| Item                4.       | Controls                and Procedures                                                                                                                                                    | 51     |
|                         |                                                                                                                                                                                      |   |
| Part                II.      | Other                Information                                                                                                                                                          |   |
|                         |                                                                                                                                                                                      |   |
| Item                6.       | Exhibits                                                                                                                                                                                  | 52     |
|                         |                                                                                                                                                                                      |   |
| Signatures                   | 53                                                                                                                                                                                        |
|                         |                                                                                                                                                                                      |
| Exhibit                Index | 54                                                                                                                                                                                        |

----

**Item      1. Financial Information**

**WINTHROP      REALTY TRUST**

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

**CONSOLIDATED      BALANCE SHEETS**

**(Unaudited)**

|                                                                                                                                                                                                                                                                                                                                 |   | **September 30, 2008** |     | **December 31, 2007** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|----------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                                           |   |                             |     |                            |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |
| Investments                in real estate, at cost                                                                                                                                                                                                                                                                                   |   |                             |     |                            |   |
| Land                                                                                                                                                                                                                                                                                                                                 |   | $                                | 21,344   |                            | $      | 21,325 |   |
| Buildings                and improvements                                                                                                                                                                                                                                                                                            |   |                             | 247,513  |                            |   | 244,965 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             | 268,857  |                            |   | 266,290 |   |
| Less                - accumulated depreciation                                                                                                                                                                                                                                                                                       |   |                             | (24,192  | )                               |   | (19,214 | ) |
| Investments                in real estate, net                                                                                                                                                                                                                                                                                       |   |                             | 244,665  |                            |   | 247,076 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                                             |   |                             | 179,774  |                            |   | 36,654 |   |
| Restricted                cash held in escrows                                                                                                                                                                                                                                                                                       |   |                             | 39,044   |                            |   | 5,978 |   |
| Mortgage-backed                securities available for sale pledged under repurchase                agreements                                                                                                                                                                                                                      |   |                             | —  |                            |   | 78,141 |   |
| Loans                receivable, net of reserve of $1,266 and $1,266,                respectively                                                                                                                                                                                                                                    |   |                             | 16,839   |                            |   | 12,496 |   |
| Accounts                receivable, net of reserve of $108 and $163, respectively                                                                                                                                                                                                                                                    |   |                             | 11,115   |                            |   | 20,835 |   |
| Available                for sale securities                                                                                                                                                                                                                                                                                         |   |                             | 1,081    |                            |   | 51,804 |   |
| Preferred                equity investment                                                                                                                                                                                                                                                                                           |   |                             | 56,173   |                            |   | 74,573 |   |
| Equity                investments                                                                                                                                                                                                                                                                                                    |   |                             | 155,206  |                            |   | 179,475 |   |
| Lease                intangibles, net                                                                                                                                                                                                                                                                                                |   |                             | 27,450   |                            |   | 31,964 |   |
| Deferred                financing costs, net                                                                                                                                                                                                                                                                                         |   |                             | 3,875    |                            |   | 5,309 |   |
| Assets                of discontinued operations                                                                                                                                                                                                                                                                                     |   |                             | 919      |                            |   | 1,112 |   |
| Other                assets                                                                                                                                                                                                                                                                                                          |   |                             | —  |                            |   | 30 |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                                                                                          |   | $                                | 736,141  |                            | $      | 745,447 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                                                                      |   |                             |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Mortgage                loans payable                                                                                                                                                                                                                                                                                                |   | $                                | 233,708  |                            | $      | 236,925 |   |
| Repurchase                agreements                                                                                                                                                                                                                                                                                                 |   |                             | —  |                            |   | 75,175 |   |
| Series                  B-1 Cumulative Convertible Redeemable Preferred Shares of                  Beneficial Interest, $25 per share liquidating preference,                  3,443,825 and 3,930,657 shares authorized and outstanding at September                  30,                  2008 and December 31, 2007, respectively |   |                             | 86,096   |                            |   | 98,266 |   |
| Revolving                line of credit                                                                                                                                                                                                                                                                                              |   |                             | 70,000   |                            |   | — |   |
| Accounts                payable and accrued liabilities                                                                                                                                                                                                                                                                              |   |                             | 8,707    |                            |   | 12,046 |   |
| Dividends                payable                                                                                                                                                                                                                                                                                                     |   |                             | 5,113    |                            |   | 16,242 |   |
| Below                market lease intangibles, net                                                                                                                                                                                                                                                                                   |   |                             | 4,025    |                            |   | 5,021 |   |
| Deferred                income                                                                                                                                                                                                                                                                                                       |   |                             | 823      |                            |   | — |   |
| TOTAL                LIABILITIES                                                                                                                                                                                                                                                                                                     |   |                             | 408,472  |                            |   | 443,675 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                                                                                                                                                                                                     |   |                             |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| **MINORITY                INTEREST**                                                                                                                                                                                                                                                                                                 |   |                             | 10,833   |                            |   | 9,978 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| **SHAREHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                                              |   |                             |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Common                Shares of Beneficial Interest, $1 par, unlimited authorized, 78,659,835                and 66,291,837 outstanding at September 30, 2008 and December 31,                2007,                respectively                                                                                                      |   |                             | 78,660   |                            |   | 66,292 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                                            |   |                             | 397,865  |                            |   | 358,145 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                                                                  |   |                             | (4,999   | )                               |   | (8,090 | ) |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| Accumulated                distributions in excess of net income                                                                                                                                                                                                                                                                     |   |                             | (154,690 | )                               |   | (124,553 | ) |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |  |   |
| Total                Shareholders' Equity                                                                                                                                                                                                                                                                                            |   |                             | 316,836  |                            |   | 291,794 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |                             |     |                            |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                                            |   | $                                | 736,141  |                            | $      | 745,447 |   |

----

**WINTHROP      REALTY TRUST**

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

**CONSOLIDATED      STATEMENTS OF OPERATIONS AND**

**COMPREHENSIVE      INCOME**

**(Unaudited)**

|                                                                                                                                 |   | **For the Three Months Ended** |    | **For the Nine Months Ended** |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|---------------------------------------------------|--------|
|                                                                                                                                 |   | **September 30,**                             |    | **September 30,**                            |   |
|                                                                                                                                 |   | **2008**                                           |    | **2007**                                          |   | **2008** |   | **2007** |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |
| **Revenue**                                                                                                                          |   |                                               |    |                                              |   |   |   |   |   |
| Rents                and reimbursements                                                                                              |   | $                                                  | 10,873  |                                              | $      | 9,876 |   | $ | 32,533 |   | $ | 30,716 |   |
| Interest                and dividends                                                                                                |   |                                               | 379     |                                              |   | 2,415 |   |   | 1,262 |   |   | 10,337 |   |
|                                                                                                                                 |   |                                               | 11,252  |                                              |   | 12,291 |   |   | 33,795 |   |   | 41,053 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                                                                                         |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Property                operating                                                                                                    |   |                                               | 1,848   |                                              |   | 1,556 |   |   | 5,517 |   |   | 3,895 |   |
| Real                estate taxes                                                                                                     |   |                                               | 766     |                                              |   | 499 |   |   | 2,180 |   |   | 1,366 |   |
| Depreciation                and amortization                                                                                         |   |                                               | 3,020   |                                              |   | 2,950 |   |   | 9,065 |   |   | 8,813 |   |
| Interest                                                                                                                             |   |                                               | 5,889   |                                              |   | 6,911 |   |   | 17,110 |   |   | 21,942 |   |
| Provision                for loss on loan receivable                                                                                 |   |                                               | — |                                              |   | — |   |   | — |   |   | 1,266 |   |
| Impairment                loss on available for sale securities                                                                      |   |                                               | — |                                              |   | — |   |   | 207 |   |   | — |   |
| General                and administrative                                                                                            |   |                                               | 1,566   |                                              |   | 2,028 |   |   | 5,119 |   |   | 5,860 |   |
| State                and local taxes                                                                                                 |   |                                               | 13      |                                              |   | 14 |   |   | 235 |   |   | 485 |   |
|                                                                                                                                 |   |                                               | 13,102  |                                              |   | 13,958 |   |   | 39,433 |   |   | 43,627 |   |
| **Other                income**                                                                                                      |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Earnings                from preferred equity investments                                                                            |   |                                               | 1,100   |                                              |   | 3,044 |   |   | 2,518 |   |   | 10,441 |   |
| Equity                in earnings (loss) of equity investments                                                                       |   |                                               | 2,323   |                                              |   | 2,440 |   |   | (16,198 | ) |   | 6,203 |   |
| Gain                on sale of available for sale securities                                                                         |   |                                               | — |                                              |   | — |   |   | 2,029 |   |   | 9,982 |   |
| Gain                on sale of mortgage-backed securities available for sale                                                         |   |                                               | — |                                              |   | — |   |   | 454 |   |   | — |   |
| Gain                on sale of other assets                                                                                          |   |                                               | 24      |                                              |   | — |   |   | 24 |   |   | — |   |
| Loss                on early extinguishment of debt                                                                                  |   |                                               | — |                                              |   | — |   |   | — |   |   | (320 | ) |
| Interest                income                                                                                                       |   |                                               | 761     |                                              |   | 632 |   |   | 1,425 |   |   | 2,658 |   |
|                                                                                                                                 |   |                                               | 4,208   |                                              |   | 6,116 |   |   | (9,748 | ) |   | 28,964 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Income                (loss) from continuing operations before** **minority                interest**                         |   |                                               | 2,358   |                                              |   | 4,449 |   |   | (15,386 | ) |   | 26,390 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Minority                interest                                                                                                     |   |                                               | 178     |                                              |   | (40 | ) |   | 264 |   |   | 502 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Income                (loss) from continuing operations**                                                                          |   |                                               | 2,180   |                                              |   | 4,489 |   |   | (15,650 | ) |   | 25,888 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Discontinued                operations**                                                                                           |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                   |   |                                               | 49      |                                              |   | 881 |   |   | 134 |   |   | 959 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Net                income (loss)**                                                                                                 |   | $                                                  | 2,229   |                                              | $      | 5,370 |   | $ | (15,516 | ) | $ | 26,847 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Comprehensive                income**                                                                                              |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                                     |   | $                                                  | 2,229   |                                              | $      | 5,370 |   | $ | (15,516 | ) | $ | 26,847 |   |
| Change                in unrealized gain on available for sale securities arising during                the                period    |   |                                               | 16      |                                              |   | (2,785 | ) |   | 2,128 |   |   | (2,646 | ) |
| Change                in unrealized gain on mortgage-backed securities available for sale                arising during the period   |   |                                               | — |                                              |   | 273 |   |   | 190 |   |   | 938 |   |
| Change                in unrealized gain (loss) on interest rate derivatives arising during                the                period |   |                                               | 41      |                                              |   | (641 | ) |   | (209 | ) |   | (884 | ) |
| Change                in unrealized gain (loss) from equity investments                                                              |   |                                               | (820    | )                                                 |   | (6,903 | ) |   | 3,465 |   |   | (5,833 | ) |
| Less                reclassification adjustment from gains included in net                income                                     |   |                                               | — |                                              |   | — |   |   | (2,483 | ) |   | (9,982 | ) |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Comprehensive                income (loss)                                                                                           |   | $                                                  | 1,466   |                                              | $      | (4,686 | ) | $ | (12,425 | ) | $ | 8,440 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Per                Common Share data - Basic**                                                                                     |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                                              |   | $                                                  | 0.03    |                                              | $      | 0.07 |   | $ | (0.21 | ) | $ | 0.35 |   |
| Income                from discontinued operations                                                                                   |   |                                               | — |                                              |   | 0.01 |   |   | — |   |   | 0.01 |   |
| Net                income (loss)                                                                                                     |   | $                                                  | 0.03    |                                              | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Per                Common Share data - Diluted**                                                                                   |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                                              |   | $                                                  | 0.03    |                                              | $      | 0.07 |   | $ | (0.21 | ) | $ | 0.35 |   |
| Income                from discontinued operations                                                                                   |   |                                               | — |                                              |   | 0.01 |   |   | — |   |   | 0.01 |   |
| Net                income (loss)                                                                                                     |   | $                                                  | 0.03    |                                              | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |
|                                                                                                                                 |   |                                               |    |                                              |   |   |   |   |   |   |   |   |   |
| **Basic                Weighted-Average Common Shares**                                                                              |   |                                                    | 78,583  |                                              |   | 65,846 |   |   | 72,849 |   |   | 65,676 |   |
| **Diluted                Weighted-Average Common Shares**                                                                            |   |                                               | 78,625  |                                              |   | 65,912 |   |   | 72,849 |   |   | 65,742 |   |

----

**WINTHROP      REALTY TRUST**

**FORM      10-Q - SEPTEMBER 30, 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                loss                                                                                                                                                                                  |   |                                  | — |       |   | —                     |   |                      | — |        |   | (15,516  | )      |   | — |   |   | (15,516 | ) |
| Dividends                paid or accrued on Common Shares of beneficial interest ($0.195 per                share)                                                                                       |   |                                  | — |       |   | —                     |   |                      | — |        |   | (14,621  | )      |   | — |   |   | (14,621 | ) |
| Change                in unrealized gain on available for sale securities, net of                reclassification adjustment for amounts included in net                income                           |   |                                  | — |       |   | —                     |   |                      | — |        |   | —  |   |   | 99 |   |   | 99 |   |
| 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                                                                                                                                    |   |                                  | — |       |   | —                     |   |                      | — |        |   | —  |   |   | (209 | ) |   | (209 | ) |
| Change                in unrealized loss from equity investments                                                                                                                                         |   |                                  | — |       |   | —                     |   |                      | — |        |   | —  |   |   | 3,465 |   |   | 3,465 |   |
| Stock                issued pursuant to dividend reinvestment plan                                                                                                                                       |   |                                  | 818     |       |   | 818                         |   |                      | 2,600   |        |   | —  |   |   | — |   |   | 3,418 |   |
| Conversion                of Series B-1 Preferred Shares to Common Shares                                                                                                                                |   |                                  | 2,705   |       |   | 2,705                       |   |                      | 9,064   |        |   | —  |   |   | — |   |   | 11,769 |   |
| Issuance                of Common Shares through rights offering, net                                                                                                                                    |   |                                  | 8,845   |       |   | 8,845                       |   |                      | 28,056  |        |   | —  |   |   | — |   |   | 36,901 |   |
|                                                                                                                                                                                                     |   |                                  |    |       |   |                        |   |                      |    |        |   |     |   |   |   |   |   |   |   |
| Balance,                September 30, 2008                                                                                                                                                               |   |                                  | 78,660  |       | $      | 78,660                      |   | $                         | 397,865 |        | $      | (154,690 | )      | $ | (4,999 | ) | $ | 316,836 |   |

----

**WINTHROP      REALTY TRUST**

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

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                  |   | **For the Nine Months Ended** |    |
|-----------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                                  |   | **September 30**                             |    |
|                                                                                                                  |   | **2008**                                          |    | **2007** |   |
| **Cash                flows from operating activities**                                                               |   |                                              |    |   |   |
| Net                income (loss)                                                                                      |   | $                                                 | (15,516 | ) | $ | 26,847 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities |   |                                              |    |   |   |   |   |
| Depreciation                and amortization (including amortization of deferred financing                costs)      |   |                                              | 6,077   |   |   | 6,046 |   |
| Amortization                of lease intangibles                                                                      |   |                                              | 4,172   |   |   | 4,202 |   |
| Straight-lining                of rental income                                                                       |   |                                              | (624    | ) |   | (744 | ) |
| Earnings                of preferred equity investments less than (in excess of)                distributions         |   |                                              | 2,100   |   |   | (8 | ) |
| Earnings                of equity investments less than (in excess of)                distributions                   |   |                                              | 22,786  |   |   | (6,203 | ) |
| Restricted                cash held in escrows                                                                        |   |                                              | 549     |   |   | 213 |   |
| Minority                interest                                                                                      |   |                                              | 264     |   |   | 502 |   |
| Gain                on sale of mortgage-backed securities available for sale                                          |   |                                              | (454    | ) |   | — |   |
| Gain                on sale of available for sale securities                                                          |   |                                              | (2,029  | ) |   | (9,982 | ) |
| Loss                from early extinguishment of debt                                                                 |   |                                              | — |   |   | 320 |   |
| Impairment                loss                                                                                        |   |                                              | 207     |   |   | — |   |
| Provision                for loss on loan receivable                                                                  |   |                                              | — |   |   | 1,266 |   |
| Bad                debt expense (recovery)                                                                            |   |                                              | (55     | ) |   | 71 |   |
| Interest                receivable on loans                                                                           |   |                                              | (50     | ) |   | 198 |   |
| Net                change in accounts receivable                                                                      |   |                                              | 10,399  |   |   | 2,878 |   |
| Net                change in accounts payable and accrued liabilities                                                 |   |                                              | (2,968  | ) |   | (2,185 | ) |
| Net                change in other assets                                                                             |   |                                              | — |   |   | 356 |   |
|                                                                                                                  |   |                                              |    |   |   |   |   |
| Net                cash provided by operating activities                                                              |   |                                              | 24,858  |   |   | 23,777 |   |
|                                                                                                                  |   |                                              |    |   |   |   |   |
| **Cash                flows from investing activities**                                                               |   |                                              |    |   |   |   |   |
| Investments                in real estate                                                                             |   |                                              | (2,784  | ) |   | (8,884 | ) |
| Proceeds                from repayments of mortgage-backed securities available for                sale               |   |                                              | 78,318  |   |   | 30,094 |   |
| Return                of equity on equity investments                                                                 |   |                                              | 19,041  |   |   | 10,000 |   |
| Investment                in equity investments                                                                       |   |                                              | (14,093 | ) |   | (78,288 | ) |
| Investment                in preferred equity investment                                                              |   |                                              | (4,973  | ) |   | (17,669 | ) |
| Proceeds                from preferred equity investments                                                             |   |                                              | 21,273  |   |   | 16,162 |   |
| Purchase                of available for sale securities                                                              |   |                                              | (5,055  | ) |   | (3,171 | ) |
| Proceeds                from sale of available for sale securities                                                    |   |                                              | 57,699  |   |   | 21,169 |   |
| Increase                in restricted cash held in escrows                                                            |   |                                              | (619    | ) |   | (1,408 | ) |
| Issuance                and acquisition of loans receivable                                                           |   |                                              | (6,928  | ) |   | (2,986 | ) |
| Collection                of loans receivable                                                                         |   |                                              | 2,635   |   |   | 64,315 |   |
|                                                                                                                  |   |                                              |    |   |   |   |   |
| Net                cash provided by investing activities                                                              |   |                                              | 144,514 |   |   | 29,334 |   |

----

**WINTHROP      REALTY TRUST**

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

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                     |   | **For the Nine Months Ended** |    |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------|
|                                                                                                     |   | **September 30,**                            |    |
|                                                                                                     |   | **2008**                                          |    | **2007** |   |
|                                                                                                     |   |                                              |    |   |   |
| **Cash                flows from financing activities**                                                  |   |                                              |    |   |   |
| Repayment                of borrowings under repurchase agreements                                       |   | $                                                 | (75,175 | ) | $ | (28,454 | ) |
| Proceeds                from mortgage loans payable                                                      |   |                                              | 742     |   |   | 51,646 |   |
| Proceeds                from revolving line of credit                                                    |   |                                              | 70,000  |   |   | — |   |
| Restricted                cash held in escrows                                                           |   |                                              | (32,996 | ) |   | 110 |   |
| Principal                payments of mortgage loans payable                                              |   |                                              | (3,959  | ) |   | (46,335 | ) |
| Payments                of loans payable                                                                 |   |                                              | — |   |   | (30,004 | ) |
| Deferred                financing costs                                                                  |   |                                              | (24     | ) |   | (887 | ) |
| Contribution                by minority interests                                                        |   |                                              | 600     |   |   | 787 |   |
| Distribution                to minority interests                                                        |   |                                              | (9      | ) |   | (21,321 | ) |
| Dividends                paid on Common Shares                                                           |   |                                              | (25,750 | ) |   | (15,718 | ) |
| Issuance                of Common Shares through dividend reinvestment plan                              |   |                                              | 3,418   |   |   | 2,972 |   |
| Issuance                of Common Shares through rights offering                                         |   |                                              | 36,901  |   |   | — |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Net                cash used in financing activities                                                     |   |                                              | (26,252 | ) |   | (87,204 | ) |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                      |   |                                              | 143,120 |   |   | (34,093 | ) |
| Cash                and cash equivalents at beginning of period                                          |   |                                              | 36,654  |   |   | 89,463 |   |
| Cash                and cash equivalents at end of period                                                |   | $                                                 | 179,774 |   | $ | 55,370 |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| **Supplemental                Disclosure of Cash Flow Information**                                      |   |                                              |    |   |   |   |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Interest                paid                                                                             |   | $                                                 | 20,040  |   | $ | 21,259 |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Taxes                paid                                                                                |   | $                                                 | 115     |   | $ | 472 |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| **Supplemental                Disclosure of Non-Cash Investing and Financing                Activities** |   |                                              |    |   |   |   |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Dividends                accrued on Common Shares                                                        |   | $                                                 | 5,113   |   | $ | 4,295 |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Capital                expenditures accrued                                                              |   | $                                                 | 394     |   | $ | 194 |   |
|                                                                                                     |   |                                              |    |   |   |   |   |
| Conversion                of Series B-1 Preferred Shares into Common Shares                              |   | $                                                 | 11,769  |   | $ | 1,179 |   |

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

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

*Consolidation      of Variable Interest Entities”*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**
** **

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

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

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

|                                                                                                             |   | Three Months EndedSeptember 30, |    | Nine Months Ended September 30,  |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|---------|-----------------------------------------------------------|--------|
|                                                                                                             |   |  2008                                     |    | 2007                                                      |   | 2008 |   | 2007 |   |
| Basic                                                                                                            |   |                                           |    |                                                      |   |   |   |   |   |
| Income                (loss) from continuing operations                                                          |   | $                                              | 2,180   |                                                      | $      | 4,489 |   | $ | (15,650 | ) | $ | 25,888 |   |
| Allocation                  of undistributed earnings to Series B-1 Preferred                  Shares            |   |                                           | — |                                                      |   | (136 | ) |   | — |   |   | (3,132 | ) |
| Income                from discontinued operations                                                               |   |                                           | 49      |                                                      |   | 881 |   |   | 134 |   |   | 959 |   |
| Net                income (loss) applicable to Common Shares for                earnings per share purposes |   | $                                              | 2,229   |                                                      | $      | 5,234 |   | $ | (15,516 | ) | $ | 23,715 |   |
|                                                                                                             |   |                                           |    |                                                      |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                              |   |                                           | 78,583  |                                                      |   | 65,846 |   |   | 72,849 |   |   | 65,676 |   |
|  Income                (loss) from continuing operations                                                    |   | $                                              | 0.03    |                                                      | $      | 0.07 |   | $ | (0.21 | ) | $ | 0.35 |   |
| Income                from discontinued operations                                                               |   |                                           | — |                                                      |   | 0.01 |   |   | — |   |   | 0.01 |   |
| Net                income (loss) per Common Share                                                                |   | $                                              | 0.03    |                                                      | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |
|                                                                                                             |   |                                           |    |                                                      |   |   |   |   |   |   |   |   |   |
| Diluted                                                                                                          |   |                                           |    |                                                      |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                          |   | $                                              | 2,180   |                                                      | $      | 4,489 |   | $ | (15,650 | ) | $ | 25,888 |   |
| Allocation                of undistributed earnings to Series                B-1 Preferred Shares                |   |                                           | — |                                                      |   | (136 | ) |   | — |   |   | (3,132 | ) |
| Income                from discontinued operations                                                               |   |                                           | 49      |                                                      |   | 881 |   |   | 134 |   |   | 959 |   |
| Net                  income (loss) applicable to Common Shares for earnings per share                  purposes  |   | $                                              | 2,229   |                                                      | $      | 5,234 |   | $ | (15,516 | ) | $ | 23,715 |   |
|                                                                                                             |   |                                           |    |                                                      |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                              |   |                                           | 78,583  |                                                      |   | 65,846 |   |   | 72,849 |   |   | 65,676 |   |
| Convertible                Preferred Shares (1)                                                                  |   |                                           | — |                                                      |   | — |   |   | — |   |   | — |   |
| Stock                options (2)                                                                                 |   |                                           | 42      |                                                      |   | 66 |   |   | — |   |   | 66 |   |
| Diluted                weighted-average Common Shares                                                            |   |                                           | 78,625  |                                                      |   | 65,912 |   |   | 72,849 |   |   | 65,742 |   |
|                                                                                                             |   |                                           |    |                                                      |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                          |   | $                                              | 0.03    |                                                      | $      | 0.07 |   | $ | (0.21 | ) | $ | 0.35 |   |
| Income                from discontinued operations                                                               |   |                                           | — |                                                      |   | 0.01 |   |   | — |   |   | 0.01 |   |
| Net                income (loss) per Common Share                                                                |   | $                                              | 0.03    |                                                      | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |

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

|   | (2) | The                Trust’s 100 stock options were anti-dilutive for the nine months                ended September 30, 2008 and are not included in the weighted average                shares outstanding for the calculation of diluted earnings per Common                Share. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Business        Combinations*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

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

*“Accounting      Transfers of Financial Assets and Repurchase Financing Transactions”*

*Disclosures      about Derivative Instruments and Hedging Activities*

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

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

*Determining        the Fair Value of a Financial Asset When the Market For That Asset is Not        Active*
*Fair        Value Measurements*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Fair      Value Measurements” *

*Cash      Equivalents*

*Available      for Sale Securities*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Derivative      Financial Instruments*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Derivative      Financial Instruments (Continued)*

|                                            |   | Quoted Prices inActive Markets forIdentical Assets andLiabilities (Level 1) |    | Significant OtherObservableInputs (Level 2) |   | SignificantUnobservableInputs (Level 3) |   |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------|--------|---------------------------------------------------|--------|
|                                            |   |                                                                                                                |    |                                                       |   |                                              |   |
| **Assets**                                      |   |                                                                                                                |    |                                                       |   |                                              |   |
| Cash                equivalents(1)              |   | $                                                                                                                   | 122,381 |                                                       | $      | —                                           |   | $ | — |   |
| Available                for sale securities    |   | $                                                                                                                   | 1,081   |                                                       | $      | —                                           |   | $ | — |   |
|                                            |   |                                                                                                                |    |                                                       |   |                                              |   |   |   |   |
| **Liabilities**                                 |   |                                                                                                                |    |                                                       |   |                                              |   |   |   |   |
| Derivative                financial instruments |   | $                                                                                                                   | — |                                                       | $      | 270                                               |   | $ | — |   |
|                                            |   |                                                                                                                |    |                                                       |   |                                              |   |   |   |   |

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

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

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

|                                                      |   | As                of              |     | As                of             |   |
|-----------------------------------------------------------|--------|-----------------------------------|----------|----------------------------------|--------|
|                                                      |   | September                30, 2008 |     | December                31, 2007 |   |
|                                                      |   |                              |     |                             |   |
| Condensed                Balance Sheet                    |   |                              |     |                             |   |
| Investment                in real estate, net             |   | $                                 | 164,456  |                             | $      | 168,755 |   |
| Prepaid                expenses and deposits in escrow    |   |                              | 9,602    |                             |   | 8,446 |   |
| Cash                and cash equivalents                  |   |                              | 3,110    |                             |   | 3,290 |   |
| Receivables                and other assets               |   |                              | 30,283   |                             |   | 32,469 |   |
|                                                      |   |                              |     |                             |   |   |   |
| Total                Assets                               |   | $                                 | 207,451  |                             | $      | 212,960 |   |
|                                                      |   |                              |     |                             |   |   |   |
| Nonrecourse                mortgage debt                  |   |                              | 281,813  |                             | $      | 278,868 |   |
| Other                liabilities                          |   |                              | 28,065   |                             |   | 28,159 |   |
|                                                      |   |                              |     |                             |   |   |   |
| Total                Liabilities                          |   |                              | 309,878  |                             |   | 307,027 |   |
|                                                      |   |                              |     |                             |   |   |   |
| Partners'                Deficit                          |   |                              | (102,427 | )                                |   | (94,067 | ) |
|                                                      |   |                              |     |                             |   |   |   |
| Total                Liabilities and Partners' Deficit    |   | $                                 | 207,451  |                             | $      | 212,960 |   |
|                                                      |   |                              |     |                             |   |   |   |
| On                the Trust's Consolidated Balance Sheet: |   |                              |     |                             |   |   |   |
| Preferred                Equity Investment (1)            |   | $                                 | 56,173   |                             | $      | 74,573 |   |

|                                                      |   | For the Three Months Ended |    | For the Nine Months Ended |   |
|-----------------------------------------------------------|--------|------------------------------------------------|---------|-----------------------------------------------|--------|
|                                                      |   | September 30,                             |    | September 30,                       |   | September 30, |   | September 30, |   |
|                                                      |   | 2008                                           |    | 2007                                          |   | 2008 |   | 2007 |   |
|                                                      |   |                                           |    |                                          |   |   |   |   |   |
| Condensed                Statements of Operations         |   |                                           |    |                                          |   |   |   |   |   |
| Revenue                                                   |   | $                                              | 15,083  |                                          | $      | 16,156 |   | $ | 46,351 |   | $ | 43,608 |   |
| Operating                expenses                         |   |                                           | (7,686  | )                                             |   | (6,871 | ) |   | (23,082 | ) |   | (21,774 | ) |
| Interest                expense                           |   |                                           | (4,641  | )                                             |   | (4,473 | ) |   | (13,362 | ) |   | (11,524 | ) |
| Real                estate taxes                          |   |                                           | (2,645  | )                                             |   | (2,719 | ) |   | (7,783 | ) |   | (7,775 | ) |
| Depreciation                and amortization              |   |                                           | (3,368  | )                                             |   | (2,984 | ) |   | (9,532 | ) |   | (8,267 | ) |
| Other                expenses, net                        |   |                                           | (734    | )                                             |   | (689 | ) |   | (2,050 | ) |   | (1,940 | ) |
| Loss                from continuing operations            |   |                                           | (3,991  | )                                             |   | (1,580 | ) |   | (9,458 | ) |   | (7,672 | ) |
| Discontinued                operations                    |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations |   |                                           | 119     |                                          |   | (680 | ) |   | (471 | ) |   | (2,628 | ) |
| Gain                on sale of property                   |   |                                           | — |                                          |   | 11,623 |   |   | 12,733 |   |   | 38,251 |   |
| Income                from discontinued operations        |   |                                           | 119     |                                          |   | 10,943 |   |   | 12,262 |   |   | 35,623 |   |
|                                                      |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                          |   | $                                              | (3,872  | )                                             | $      | 9,363 |   | $ | 2,804 |   | $ | 27,951 |   |
|                                                      |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| On                the Trust's Consolidated                |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Statement                of Operations and                |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income:                      |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Equity                in earnings of Preferred            |   |                                           |    |                                          |   |   |   |   |   |   |   |   |   |
| Equity                Investment                          |   | $                                              | 1,100   |                                          | $      | 3,044 |   | $ | 2,518 |   | $ | 10,441 |   |

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

|                                                   |   | Lex-WinConcord                LLC &Concord DebtHoldings, LLC |    | SealyNorthwestAtlanta, LP |   | Sealy AirparkNashville LP |   | SealyNewmarket GP |    | Lex-WinAcquisition LLC |   |  Total |   |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|--------------------------------|--------|-------------------------------------|--------|------------------------|---------|-----------------------------|--------|-------------|--------|
|                                                   |   |                                                                       |    |                           |   |                                |   |                   |    |                        |   |        |   |
| Equity                investments at December 31, 2007 |   | $                                                                          | 155,461 |                           | $      | 4,755                               |   | $                      | 8,372   |                        | $      | —     |   | $ | 10,887 |   | $ | 179,475 |   |
| Contributions                                          |   |                                                                       | 5,087   |                           |   | —                             |   |                   | — |                        |   | 9,006       |   |   | — |   |   | 14,093 |   |
| Distributions/return                of capital         |   |                                                                       | (14,600 | )                              |   | (486                                | )      |                   | (630    | )                           |   | —     |   |   | (9,913 | ) |   | (25,629 | ) |
| Equity                in other comprehensive loss      |   |                                                                       | 3,465   |                           |   | —                             |   |                   | — |                        |   | —     |   |   | — |   |   | 3,465 |   |
| Equity                in loss                          |   |                                                                       | (13,953 | )                              |   | (364                                | )      |                   | (913    | )                           |   | (90         | )      |   | (878 | ) |   | (16,198 | ) |
|                                                   |   |                                                                       |    |                           |   |                                     |   |                   |    |                        |   |        |   |   |   |   |   |   |   |
| Equity                investments, September 30, 2008  |   | $                                                                          | 135,460 |                           | $      | 3,905                               |   | $                      | 6,829   |                        | $      | 8,916       |   | $ | 96 |   | $ | 155,206 |   |

*Lex-Win      Concord LLC & Concord Debt Holdings, LLC*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Lex-Win      Concord LLC & Concord Debt Holdings, LLC (Continued)*

*Determining      Whether a General Partner, or the General Partners as a Group, Controls a      Limited Partnership or Similar Entity When the Limited Partners Have Certain      Rights”*
*Accounting      for Investments in Real Estate Ventures”*

**Loan      Securities**

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

*Lex-Win      Concord LLC & Concord Debt Holdings, LLC (Continued)*

*Recognition        of Interest Income and Impairment on Purchased Beneficial Interests and        Beneficial Interests That Continue to Be Held by a Transferor in Securitized        Financial Assets*

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Lex-Win      Concord LLC & Concord Debt Holdings, LLC (Continued)*

|                                                              |   | As                of         |      | As                of        |   |
|-------------------------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|
|                                                              |   | September 30, 2008 |      | December 31, 2007 |   |
|                                                              |   |                         |      |                        |   |
| Condensed                Balance Sheets                           |   |                         |      |                        |   |
| Cash                and restricted cash                           |   | $                            | 18,690    |                        | $      | 19,094 |   |
| Real                estate debt investments, net of loss reserves |   |                         | 882,864   |                        |   | 952,035 |   |
| Available                for sale securities, net                 |   |                         | 135,125   |                        |   | 188,073 |   |
| Other                assets                                       |   |                         | 11,745    |                        |   | 12,770 |   |
|                                                              |   |                         |      |                        |   |   |   |
| Total                assets                                       |   | $                            | 1,048,424 |                        | $      | 1,171,972 |   |
|                                                              |   |                         |      |                        |   |   |   |
| Repurchase                agreements                              |   |                         | 393,541   |                        |   | 472,324 |   |
| Collateralized                debt obligations                    |   |                         | 351,525   |                        |   | 376,650 |   |
| Accounts                payable and other liabilities             |   |                         | 12,335    |                        |   | 11,974 |   |
| Minority                interests                                 |   |                         | 20,102    |                        |   | 102 |   |
| Accumulated                other comprehensive loss               |   |                         | (9,850    | )                           |   | (16,780 | ) |
| Members'                capital                                   |   |                         | 280,771   |                        |   | 327,702 |   |
|                                                              |   |                         |      |                        |   |   |   |
| Total                liabilities and members' capital             |   | $                            | 1,048,424 |                        | $      | 1,171,972 |   |
|                                                              |   |                         |      |                        |   |   |   |
| On                the Trust's Consolidated Balance Sheets:        |   |                         |      |                        |   |   |   |
| Equity                investment in venture                       |   | $                            | 135,460   |                        | $      | 155,461 |   |

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

*Concord      Debt Holdings, LLC (Continued)*

|                                                                         |   | For                  the Three Months Ended |   | For                  the Nine Months Ended |   |
|------------------------------------------------------------------------------|--------|---------------------------------------------|--------|--------------------------------------------|--------|
|                                                                         |   | September                  30,              |   | September                  30,             |   | September                  30, |   | September                  30, |   |
|                                                                         |   | 2008                                        |   | 2007                                       |   | 2008 |   | 2007 |   |
|                                                                         |   |                                        |   |                                       |   |   |   |   |   |
| Condensed                  Statements of Operations                          |   |                                        |   |                                       |   |   |   |   |   |
| Interest                  and other income                                   |   | $                                           | 18,187 |                                       | $      | 19,937 |   | $ | 55,396 |   | $ | 48,141 |   |
| Interest                  expense                                            |   |                                        | (8,486 | )                                          |   | (12,901 | ) |   | (27,093 | ) |   | (29,510 | ) |
| Impairment                  loss on available for sale securities            |   |                                        | (1,205 | )                                          |   | — |   |   | (57,021 | ) |   | — |   |
| Provision                  for loss reserves on real estate debt investments |   |                                        | (6,000 | )                                          |   | — |   |   | (8,200 | ) |   | — |   |
| Gain                  on extinguishment of debt                              |   |                                        | 5,201  |                                       |   | — |   |   | 12,699 |   |   | — |   |
| General                  and administrative                                  |   |                                        | (1,568 | )                                          |   | (1,134 | ) |   | (3,359 | ) |   | (3,564 | ) |
|                                                                         |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) before minority interest                  |   |                                        | 6,129  |                                       |   | 5,902 |   |   | (27,578 | ) |   | 15,067 |   |
|                                                                         |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Minority                  interest                                           |   |                                        | (321   | )                                          |   | — |   |   | (327 | ) |   | — |   |
|                                                                         |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Net                  income (loss)                                           |   | $                                           | 5,808  |                                       | $      | 5,902 |   | $ | (27,905 | ) | $ | 15,067 |   |
|                                                                         |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| On                  the Trust's Consolidated                                 |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Statement                  of Operations and                                 |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Comprehensive                  Income:                                       |   |                                        |   |                                       |   |   |   |   |   |   |   |   |   |
| Equity                  in earnings (loss) of equity investment              |   | $                                           | 2,904  |                                       | $      | 2,952 |   | $ | (13,953 | ) | $ | 7,534 |   |

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

*Lex-Win      Concord LLC & Concord Debt Holdings, LLC (Continued)*

|                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |    | September                30, 2008 |   | December                31, 2007                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|---------|-----------------------------------|--------|-------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                   |   | Maximum                         |    |                              |   |                                                        |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | Borrowing                Amount |    | Debt                  Outstanding |   | Collateral                  Carrying                  Value |   | Debt                  Outstanding |   | Collateral                  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 4.21% and 5.84%,                respectively. (2) (4) (5)                                   |   | $                               | 350,000 |                              | $      | 196,538                                                     |   | $ | 266,176 |   | $ | 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 4.79%                and                5.49%, respectively. (2) (4) (7)                            |   |                            | 150,000 |                              |   | 22,893                                                      |   |   | 34,683 |   |   | 48,710 |   |   | 68,671 |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |    |                              |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with the Royal Bank of Scotland PLC, successor in interest                to                Greenwich Capital Financial Products, Inc., matures on December 30,                2012,                interest is variable based on 1-month LIBOR rate plus 1%, weighted                average                of 3.49% and 5.85%, respectively. (1) |   |                            | — |                              |   | 59,613                                                      |   |   | 71,087 |   |   | 59,613 |   |   | 70,146 |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |    |                              |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with the Royal Bank of Scotland PLC, successor in interest                to                Greenwich Capital Financial Products, Inc., matures on December 15,                2008,                interest is based on 1-month LIBOR rate plus 1%, weighted average                of 4.19%                and 5.90%, respectively. (1) (6)      |   |                            | — |                              |   | 25,516                                                      |   |   | 36,452 |   |   | 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 4.21%                and 5.95%, respectively. (1) (3)                                                                                                                            |   |                            | — |                              |   | 15,981                                                      |   |   | 25,720 |   |   | 16,414 |   |   | 25,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |    |                              |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Revolving                credit facility with KeyBank National Association, matures on March                7,                2010, interest is variable based on 1-month LIBOR rate plus 175 to                225                basis points, weighted average of 5.82% at September 30,                2008                                                                        |   |                            | 100,000 |                              |   | 73,000                                                      |   |   | 103,797 |   |   | — |   |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   |                            |         |                              |   |                                                             |   |   |  |   |   |  |   |   |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                   |   | $                               | 600,000 |                              | $      | 393,541                                                     |   | $ | 537,915 |   | $ | 472,324 |   | $ | 632,475 |   |

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

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

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

|  | (4) | Interest                rate is based on type of loan asset or loan security for which financing                is provided. Weighted average interest rate at September 30, 2008                on the                Column repurchase facility was 4.21% and on the Bear Stearns repurchase                facility was 4.79%. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) | Subsequent                to September 30, 2008, Concord reduced the debt outstanding to $149,955                and the maximum borrowing amount was reduced to $150,000 and the                maturity                date was extended to March 30,                2011. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (6) | Subsequent                to September 30, 2008, Concord reduced the debt outstanding to $21,516                and                the maturity date was extended to December 15,                2009. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (7) | If                Concord is unable to extend the maturity date, it will attempt to                satisfy                the outstanding balance by (i) a capital contribution from Inland,                (ii)                financing the assets with the KeyBank credit facility, (iii) selling                assets, (iv) requesting advances from the Trust and Lexington, or                (v) a                combination thereof. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

*Lex-Win        Concord LLC & Concord Debt Holdings, LLC        (Continued)*

*Collateralized      Debt Obligations*

|                                                                                                                                                                                                                                        |   | September                30, 2008 |    | December                31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                                                                                                                                                                                                                        |   | Debt                              |    | Weighted-Average                 |   | Collateral |   | Debt |   | Weighted-Average |   | Collateral |   |
|                                                                                                                                                                                                                                        |   | Outstanding                       |    | Interest Rate               |   | Face Value |   | Outstanding |   | Interest Rate |   | Face Value |   |
|                                                                                                                                                                                                                                        |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| CDO-1                - Issued seven investment grade tranches December 21, 2006. Reinvestment                period through December 21, 2011. Matures on December 21, 2016. Interest                rate variable based on one-month LIBOR |   | $                                 | 351,525 |                             |   | 3.70 | % | $ | 464,831 |   | $ | 376,650 |   |   | 5.37 | % | $ | 464,601 |   |

*Lex-Win      Acquisition, LLC*

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

|                                          |   |                         |   | Spread Over |                           | Interest Rate as of |   | Balance as of      |   | Balance as of     |   |
|-----------------------------------------------|--------|------------------------------|--------|------------------|--------------------------------|------------------------------------|--------|------------------------------|--------|-----------------------------|--------|
|                                          |   | Maturity                     |   | LIBOR/Prime      |                           | September 30, 2008       |   | September 30, 2008 |   | December 31, 2007 |   |
| Mortgage                  Loans Payable       |   |                         |   |             |                           |                               |   |                         |   |                        |   |
| Fixed                  Interest Rate:         |   |                         |   |             |                           |                               |   |                         |   |                        |   |
|                                          |   |                         |   |             |                           |                               |   |                         |   |                        |   |
| Amherst,                  NY                  |   | October                2013  |   |             | —                        |                               |   | 5.65                         | %      | $                           | 17,007 |   | $ | 17,276 |   |
| Indianapolis,                  IN             |   | April                2015    |   |             | —                        |                               |   | 5.82                         | %      |                        | 4,401  |   |   | 4,447 |   |
| Houston,                  TX                  |   | April                2016    |   |             | —                        |                               |   | 6.49                         | %      |                        | 67,737 |   |   | 69,801 |   |
| Andover,                  MA                  |   | February                2011 |   |             | —                        |                               |   | 6.60                         | %      |                        | 6,419  |   |   | 6,503 |   |
| S.                  Burlington, VT            |   | February                2011 |   | —          |                           |                               | 6.60   | %                            |   | 2,751                       |   |   | 2,787 |   |
| Chicago,                  IL                  |   | March                2016    |   |             | —                        |                               |   | 5.75                         | %      |                        | 21,454 |   |   | 21,600 |   |
| Lisle,                  IL                    |   | June                2016     |   |             | —                        |                               |   | 6.26                         | %      |                        | 24,515 |   |   | 24,600 |   |
| Lisle,                  IL                    |   | March                2017    |   |             | —                        |                               |   | 5.55                         | %      |                        | 5,600  |   |   | 5,600 |   |
| Kansas                  City, KS              |   | June                2012     |   |             | —                        |                               |   | 7.04                         | %      |                        | 6,635  |   |   | 5,893 |   |
| Orlando,                  FL                  |   | July                2017     |   |             | —                        |                               |   | 6.40                         | %      |                        | 39,722 |   |   | 40,034 |   |
|                                          |   |                         |   |             |                           |                               |   |                         |   |                        |   |   |   |   |   |
| Variable                  Interest Rate:      |   |                         |   |             |                           |                               |   |                         |   |                        |   |   |   |   |   |   |
|                                          |   |                         |   |             |                           |                               |   |                         |   |                        |   |   |   |   |   |   |
| Various                                       |   | June                2009 (2) |   |             | LIBOR                  + 1.75% |                               |   | (1                           | )      |                        | 27,967 |   |   | 28,884 |   |
| Chicago,                  IL                  |   | March                2009    |   |             | Prime                  + 0.50% |                               |   | 5.75                         | %      |                        | 9,500  |   |   | 9,500 |   |
|                                          |   |                         |   |             |                           |                               |   |                         |   |                        |   |   |   |   |   |   |
| Total                  Mortgage Loans Payable |   |                         |   |             |                           |                               |   |                         |   |                        | $      | 233,708 |   | $ | 236,925 |   |

|  | (1) | As                    a result of the Trust entering into an interest rate swap agreement                    in the                    notional amount of $26,000, the Trust has  effectively                    converted the floating interest rate to a fixed rate of 5.80%                    through                    December, 2009. The remaining principal amount of $1,967 remains                    variable                    at LIBOR plus 1.75% (which equated to 4.25% at September 30,                    2008). |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

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

| Maturity                     |   | SwapRate |   | NotionalAmount ofHedge |   | Cost ofHedge        |   | EstimatedFair Value/CarryingValue |    | Change inUnrealizedLoss onSettled Swap |   | Gross UnrealizedIncome For the ThreeMonths EndedSeptember 30, 2008 |    | Gross UnrealizedLoss for the NineMonths EndedSeptember 30, 2008 |   |
|------------------------------|--------|----------|--------|-----------------------------|--------|--------------------------|--------|----------------------------------------|---------|-------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------------------------------|--------|
|                         |   |     |   |                        |   |                     |   |                                   |    |                                                  |   |                                                                                                  |    |                                                                                               |   |
| December                2009 |   |     | 4.05   | %                      | $      | 26,000                (1 | )      | $                                      | — |                                                  | $      | (270                                                                                                  | )  | $                                                                                                  | (113   | ) | $ | 41 |   | $ | (179 | ) |

|   | (1) | Represents                a swap agreement related to the variable interest rate loan collateralized                by various properties. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

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

| Date of Issuance |   | Number of Shares Issued |      | Price per Share |   | Type of Offering |   |
|----------------------------|--------|----------------------------------------|-----------|---------------------------|--------|----------------------------|--------|
|                       |   |                                   |      |                      |   |                       |   |
| 1/15/08                    |   |                                   | 321,539   |                      | $      | 5.07                       |   |   | DRIP(1) |   |
| 4/15/08                    |   |                                   | 205,132   |                      | $      | 4.13                       |   |   | DRIP |   |
| 5/15/08                    |   |                                   | 8,844,936 |                      | $      | 4.27                       |   |   | Rights                Offering(2) |   |
| 7/15/08                    |   |                                   | 291,772   |                      | $      | 3.22                       |   |   | DRIP |   |

|  | (1) | The                Trust’s Dividend Reinvestment and Stock Purchase Plan                (“DRIP”). |
|--|-----|---------------------------------------------------------------------------------------------------------------------|

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

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

| **10.** | **Common                Shares of Beneficial Interest                (Continued)** |
|---------|------------------------------------------------------------------------------------|

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

|                                     |   | Three Months Ended September 30, |   | Nine Months Ended September 30,  |   |
|------------------------------------------|--------|------------------------------------------------------|--------|-----------------------------------------------------------|--------|
|                                     |   | 2008                                                 |   | 2007                                                      |   | 2008 |   | 2007 |   |
|                                     |   |                                                 |   |                                                      |   |   |   |   |   |
| Asset                  Management (1)    |   | $                                                    | 1,484  |                                                      | $      | 1,328 |   | $ | 4,195 |   | $ | 3,805 |   |
| Property                  Management (2) |   |                                                 | 69     |                                                      |   | 63 |   |   | 195 |   |   | 193 |   |

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

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

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

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

|                                           |   | September                30,2008 |    | December                31,2007 |   |
|------------------------------------------------|--------|----------------------------------|---------|---------------------------------|--------|
| **Identifiable                Assets**         |   |                             |    |                            |   |
| Operating                Properties            |   | $                                | 292,684 |                            | $      | 293,241 |   |
| Loan                Assets and Loan Securities |   |                             | 208,472 |                            |   | 320,671 |   |
| REIT                Equity Interests           |   |                             | 1,176   |                            |   | 71,353 |   |
| Other                (1)                       |   |                             | 233,809 |                            |   | 60,182 |   |
| **Total                Assets**                |   | $                                | 736,141 |                            | $      | 745,447 |   |

----

**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

**Business      Segments (in thousands)**

|                                                                             |   | For                the Three Months Ended |    |  For                the Nine Months Ended |   |
|----------------------------------------------------------------------------------|--------|-------------------------------------------|---------|------------------------------------------------|--------|
|                                                                             |   | September 30,                        |    |  September 30,                       |   |  September 30, |   |  September 30, |   |
|                                                                             |   | 2008                                      |    |  2007                                     |   |  2008 |   |  2007 |   |
| **Operating                Properties**                                          |   |                                      |    |                                      |   |    |   |    |   |
| Rents                and reimbursements                                          |   | $                                         | 10,873  |                                           | $      | 9,876 |   | $ | 32,533 |   | $ | 30,716 |   |
| Operating                expenses                                                |   |                                      | (1,848  | )                                              |   | (1,556 | ) |   | (5,517 | ) |   | (3,895 | ) |
| Real                estate taxes                                                 |   |                                      | (766    | )                                              |   | (499 | ) |   | (2,180 | ) |   | (1,366 | ) |
| Loss                on extinguishment of debt                                    |   |                                      | — |                                           |   | — |   |   | — |   |   | (320 | ) |
| Equity                in loss of Sealy Northwest Atlanta, L.P.                   |   |                                      | (128    | )                                              |   | (239 | ) |   | (364 | ) |   | (502 | ) |
| Equity                in loss of Sealy Airpark Nashville L.P.                    |   |                                      | (363    | )                                              |   | (408 | ) |   | (913 | ) |   | (790 | ) |
| Equity                in loss of Sealy Newmarket                                 |   |                                      | (90     | )                                              |   | — |   |   | (90 | ) |   | — |   |
| Net                operating income                                              |   |                                      | 7,678   |                                           |   | 7,174 |   |   | 23,469 |   |   | 23,843 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Loan                Assets and Loan Securities**                               |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Interest                                                                         |   |                                      | 342     |                                           |   | 1,216 |   |   | 1,171 |   |   | 6,712 |   |
| Equity                in earnings of preferred equity investment (Marc Realty)   |   |                                      | 1,100   |                                           |   | 3,044 |   |   | 2,518 |   |   | 10,441 |   |
| Equity                in earnings (loss) of Concord Debt Holdings, LLC           |   |                                      | 2,904   |                                           |   | 2,952 |   |   | (13,953 | ) |   | 7,534 |   |
| Gain                on sale of mortgage-backed securities                        |   |                                      | — |                                           |   | — |   |   | 454 |   |   | — |   |
| Gain                on sale of other assets                                      |   |                                      | 24      |                                           |   | — |   |   | 24 |   |   | — |   |
| Provision                for loss on loan receivable                             |   |                                      | — |                                           |   | — |   |   | — |   |   | (1,266 | ) |
| Net                operating income (loss)                                       |   |                                      | 4,370   |                                           |   | 7,212 |   |   | (9,786 | ) |   | 23,421 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **REIT                Equity Interests**                                         |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Dividends                                                                        |   |                                      | 37      |                                           |   | 1,199 |   |   | 91 |   |   | 3,625 |   |
| Gain                on sale of real estate securities                            |   |                                      | — |                                           |   | — |   |   | 2,029 |   |   | 9,982 |   |
| Equity                in earnings (loss) of Lex-Win Acquisition, LLC             |   |                                      | — |                                           |   | 135 |   |   | (878 | ) |   | (39 | ) |
| Impairment                loss on available for sale securities                  |   |                                      | — |                                           |   | — |   |   | (207 | ) |   | — |   |
| Net                operating income                                              |   |                                      | 37      |                                           |   | 1,334 |   |   | 1,035 |   |   | 13,568 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Net                Operating Income**                                          |   |                                      | 12,085  |                                           |   | 15,720 |   |   | 14,718 |   |   | 60,832 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Less                - Depreciation and Amortization**                          |   |                                      | 3,020   |                                           |   | 2,950 |   |   | 9,065 |   |   | 8,813 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Less                - Interest Expense**                                       |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Operating                Properties                                              |   |                                      | 3,674   |                                           |   | 3,614 |   |   | 11,117 |   |   | 10,804 |   |
| Loan                assets and loan securities                                   |   |                                      | — |                                           |   | 1,331 |   |   | 206 |   |   | 5,289 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Corporate                Income (Expense)**                                    |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Interest                income                                                   |   |                                      | 761     |                                           |   | 632 |   |   | 1,425 |   |   | 2,658 |   |
| Interest                expense                                                  |   |                                      | (2,215  | )                                              |   | (1,966 | ) |   | (5,787 | ) |   | (5,849 | ) |
| General                and administrative (1)                                    |   |                                      | (1,566  | )                                              |   | (2,028 | ) |   | (5,119 | ) |   | (5,860 | ) |
| State                and local taxes                                             |   |                                      | (13     | )                                              |   | (14 | ) |   | (235 | ) |   | (485 | ) |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations before minority interest |   |                                      | 2,358   |                                           |   | 4,449 |   |   | (15,386 | ) |   | 26,390 |   |
| Minority                interest                                                 |   |                                      | 178     |                                           |   | (40 | ) |   | 264 |   |   | 502 |   |
| Income                (loss) from continuing operations                          |   |                                      | 2,180   |                                           |   | 4,489 |   |   | (15,650 | ) |   | 25,888 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                               |   |                                      | 49      |                                           |   | 881 |   |   | 134 |   |   | 959 |   |
|                                                                             |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| **Net                Income (loss)**                                             |   | $                                         | 2,229   |                                           | $      | 5,370 |   | $ | (15,516 | ) | $ | 26,847 |   |
| **Capital                Expenditures**                                          |   |                                      |    |                                           |   |   |   |   |   |   |   |   |   |
| Operating                properties                                              |   | $                                         | 821     |                                           | $      | 411 |   | $ | 2,428 |   | $ | 1,087 |   |

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**WINTHROP        REALTY TRUST**

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

**NOTES        TO UNAU**
**DITED CONSOLIDATED FINANCIAL        STATEMENTS**

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

*Repurchase      of Common Shares*

*Repurchase      of Series B-1 Preferred Shares*

*urchase      of Common Shares in Lexington*

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**WINTHROP        REALTY TRUST**

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

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

**Overview**

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**WINTHROP        REALTY TRUST**

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

**Capital        and Credit Market Deterioration**

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**WINTHROP        REALTY TRUST**

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

|                                                            |   | For the Three Months EndedSeptember 30, |      | For the Nine Months EndedSeptember 30, |   |
|-----------------------------------------------------------------|--------|------------------------------------------------------------------|-----------|-----------------------------------------------------------------|--------|
|                                                            |   | 2008                                                             |      | 2007                                                            |   | 2008 |   | 2007 |   |
|                                                            |   |                                                             |      |                                                            |   |   |   |   |   |
| Net                  income (loss)                              |   | $                                                                | 2,229,000 |                                                            | $      | 5,370,000 |   | $ | (15,516,000 | ) | $ | 26,847,000 |   |
|                                                            |   |                                                             |      |                                                            |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per Common Share, basic      |   | $                                                                | 0.03      |                                                            | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |
|                                                            |   |                                                             |      |                                                            |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per Common Share, diluted    |   | $                                                                | 0.03      |                                                            | $      | 0.08 |   | $ | (0.21 | ) | $ | 0.36 |   |
|                                                            |   |                                                             |      |                                                            |   |   |   |   |   |   |   |   |   |
| Net                  cash flow provided by operating activities |   |                                                             |      |                                                            |   |   |   | $ | 24,858,000 |   | $ | 23,777,000 |   |

|                                              |   | September 30, 2008 |        | December 31, 2007 |   |
|---------------------------------------------------|--------|------------------------------|-------------|-----------------------------|--------|
|                                              |   |                         |        |                        |   |
| Total                  assets                     |   | $                            | 736,141,000 |                        | $      | 745,447,000 |   |
|                                              |   |                         |        |                        |   |   |   |
| Total                  shareholders’ equity |   | $                            | 316,836,000 |                        | $      | 291,794,000 |   |

|   | · | On                July 7, 2008, we made a $1,050,000 mezzanine loan on a newly acquired                property in the Marc Realty portfolio. The property is located at                180                North Wacker, Chicago, Illinois. The loan bears interest at 8.5%,                requires                monthly payments of interest only and matures on April 18, 2012.                In                connection with the loan, we acquired an equity interest in the borrower                which entitles us to share in operating cash flow and capital proceeds. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                July 28, 2008, we received a distribution of $10,000,000 from our                equity                investment in Concord. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

|   | · | On                August 2, 2008, we, together with Lexington, restructured Concord                and                admitted Inland as a member in Concord with a redeemable 10% preferred                membership interest. In connection with this transaction, we formed                with                Lexington a new entity known as Lex-Win Concord LLC (“Lex-Win Concord”).                Both we and Lexington contributed all of their interests in Concord                and                WRP Management, LLC, the entity that provides collateral management                services to Concord Real Estate CDO 2006-1, Ltd. (“CDO-1”), to Lex-Win                Concord. As a result, each of us and Lexington holds a 50% ownership                interest in Lex-Win Concord. Immediately following such contribution,                Inland contributed $20,000,000 to Concord and was admitted as a member                of                Concord. Inland further agreed to contribute up to an additional                $80,000,000 to Concord. Inland’s contributions are to be used primarily                for additional investments by Concord, and if Inland agrees, to satisfy                any future margin calls or prepayments on Concord’s credit facilities. In                connection with its investment in Concord, Inland is entitled to                receive a                priority return of 10% on its contributed and unreturned capital. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                August 6, 2008, Lex-Win Acquisition sold all of its shares of Piedmont                Office Realty Trust for an aggregate price of $32,289,000. We received                a                distribution of our pro-rata share of $9,041,000 in connection with                this                sale. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                August 20, 2008, we acquired through a venture with Sealy & Company                Inc., which we refer to as Sealy, a six building office-flex campus                containing approximately 470,000 square feet in Northwest Atlanta,                Georgia. The campus is both similar to and adjacent with the twelve                building office-flex campus containing approximately 472,000 square                feet                previously acquired in a venture with Sealy in Northwest Atlanta,                Georgia.                The purchase price for the property was $47,000,000, inclusive of                assumed                debt. The venture assumed an existing $37,000,000, 6.12% first mortgage                loan encumbering the property which matures in November 2016. Our                initial                percentage ownership in the new venture is                68%. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During                October 2008, we acquired through several share repurchases 350,000                of our                Common Shares at                an average price of approximately $2.66 per Common Share aggregating                $930,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                October 28 and November 3, 2008, we acquired a total of 1,024,000                of our                Series B-1 Preferred Shares for a gross price of approximately                $18,583,000, which represents an approximately 27.4% discount from                their                liquidation value. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                October 28, 2008, we acquired in a privately negotiated transaction                3,500,000 shares of common stock in Lexington at a purchase price                of $5.60                per share and obtained seller non-recourse financing equal to 50%                of the                purchase price, which financing has a term of three years, bears                interest                at a rate of 3-month LIBOR plus 250 basis points and requires margin                calls                only at such time as the loan amount equals or exceeds 60% of the                value of                the shares. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                October 31, 2008, Concord reduced the balance on its repurchase line                with                Column Financial by $42,600,000 and extended the maturity of the                line                through March 2011. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On                October 10, 2008, Concord extended the maturity date on a repurchase                agreement with Greenwich Capital Financial which was scheduled to                expire                December 15, 2008 for a period of one                year. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

**Critical      Accounting Policies and Estimates**

**Recently      Issued Accounting Standards **

**Results      of Operations **

**Results      of Operations - Nine Months Ended September 30, 2008 Versus September 30, 2007      **

*Net      Earnings (loss)*

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**WINTHROP        REALTY TRUST**

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

*Operating      Properties *

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**WINTHROP        REALTY TRUST**

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

*Loan      Assets and Loan Securities*

*REIT      Equity Interests*

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**WINTHROP        REALTY TRUST**

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

*Corporate      Activities*

*State      Income Taxes*

**Results      of Operations - Three Months Ended September 30, 2008 Versus September 30,      2007**

*Net      Earnings *

*Operating      Properties *

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**WINTHROP        REALTY TRUST**

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

*Loan      Assets and Loan Securities*

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**WINTHROP        REALTY TRUST**

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

*REIT      Equity Interests*

*Corporate      Activities*

*State      Income Taxes*

*Impact      of Capital and Credit Market Deterioration on Results of      Operations*

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**WINTHROP        REALTY TRUST**

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

**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; |
|--|--------|---------------------------------------------|

|  | · | borrowings                under our credit facility; and |
|--|--------|----------------------------------------------------------|

|  | · | asset                specific borrowings. |
|--|--------|-------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

*Cash      Flows*

*Equity      Investment in Joint Venture*

*Dividends      *

**Off-Balance      Sheet Investments**

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**WINTHROP        REALTY TRUST**

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

**Lex-Win      Concord, LLC**

| Total                Assets                                                |   | $      | 1,048,424 |   |
|----------------------------------------------------------------------------|--------|--------|-----------|--------|
| Total                Liabilities                                           |   |   | 757,401   |   |
| Cash                and restricted cash                                    |   |   | 18,690    |   |
| Interest                and Other Income                                   |   |   | 55,396    |   |
| Interest                Expense                                            |   |   | 27,093    |   |
| Impairment                loss on available for sale securities            |   |   | 57,021    |   |
| Provision                for loss reserves on real estate debt investments |   |   | 8,200     |   |
| Net                Loss                                                    |   |   | (27,905   | )      |

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**WINTHROP        REALTY TRUST**

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

|   | · | acquired                loan assets and loan securities with a stated principal balance of                $7,931,000 for $7,520,000 with a weighted yield to maturity of                18.09%; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acquired                securities issued by CDO-1 with a total face value of $25,125,000                for                $12,070,000 resulting in a net gain on extinguishment of debt after                costs                of $12,699,000; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | borrowed                an aggregate of $73,000,000 which is secured by certain of its loan                assets; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | made                $151,783,000 in principal payments on its credit facilities;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | made                aggregate distributions to its initial members of $29,200,000, $14,600,000                of which was distributed to us. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

*Recognition          of Interest Income and Impairment on Purchased Beneficial Interests and          Beneficial Interests That Continue to Be Held by a Transferor in Securitized          Financial Assets*

| CDO-1’s                    Loan Assets and Loan Securities September 30, 2008 |   | CDO-1’s                    Notes September 30, 2008 |    |
|-------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|---------|
| DateClosed                                                                          |   | Face Value ofCDO-1Collateral (1)           |    | WeightedAverageInterestRate |   | WeightedAverageLife (years) |   | OutstandingCDO-1Notes (2) |   | WeightedAverageInterestRate |   | StatedMaturity |   | EquityValue (3) |   |
|                                                                                |   |                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |
| 12/21/06                                                                            |   | $                                                         | 464,831 |   |   | 6.37 | % |   | 4.18 |   | $ | 351,525 |   |   | 3.70 | % |   | 12/2016 |   | $ | 113,306 |   |

|  | (1) | Consists                of loan assets with a face value of $338,066 and loan securities                with a                face value of $126,765. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Excludes                notes and equity held by Concord. |
|--|-----|-----------------------------------------------------------|

|  | (3) | 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. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

| Industry                 |   | %                of Face Value |   |
|--------------------------|--------|--------------------------------|--------|
|                     |   |                           |   |
| Hospitality              |   |                           | 30.59  | % |
| Office                   |   |                           | 45.86  | % |
| Mixed                Use |   |                           | 5.10   | % |
| Retail                   |   |                           | 4.43   | % |
| Industrial               |   |                           | 7.09   | % |
| Multi-family             |   |                           | 6.93   | % |
|                     |   |                           | 100.00 | % |

|                                                                 |   | FaceValue                       |    | CarryingValue (1) |   | Allocation byInvestmentType |   | Fixed Rate:AverageYield |   | Floating Rate:Average Spreadover LIBOR |   |
|----------------------------------------------------------------------|--------|---------------------------------|---------|------------------------|--------|----------------------------------|--------|------------------------------|--------|-------------------------------------------------------|--------|
|                                                                 |   | (in                  thousands) |    |
|                                                                 |   |                            |    |                   |   |                             |   |                         |   |                                                  |   |
| Whole                  loans, floating rate                          |   | $                               | 20,000  |                   | $      | 20,000                           |   |                         | 4.30   | %                                                     |   | — |   |   | 195                  bps |   |
| Whole                  loans, fixed rate                             |   |                            | 30,300  |                   |   | 30,198                           |   |                         | 6.53   | %                                                     |   | 6.36 | % |   | — |   |
| Subordinate                  interests in whole loans, floating rate |   |                            | 108,864 |                   |   | 108,833                          |   |                         | 23.42  | %                                                     |   | — |   |   | 292                  bps |   |
| Subordinate                  interests inwhole loans, fixed rate     |   |                            | 27,494  |                   |   | 24,946                           |   |                         | 5.91   | %                                                     |   | 7.47 | % |   | — |   |
| Mezzanine                  loans, floating rate                      |   |                            | 81,410  |                   |   | 81,410                           |   |                         | 17.51  | %                                                     |   | — |   |   | 218                  bps |   |
| Mezzanine                  loans, fixed rate                         |   |                            | 69,998  |                   |   | 68,089                           |   |                         | 15.06  | %                                                     |   | 7.11 | % |   | — |   |
|                                                                 |   |                            |    |                   |   |                             |   |                         |   |                                                  |   |   |   |   |   |   |
| Loan                  securities, floating rate                      |   |                            | 104,360 |                   |   | 78,903                           |   |                         | 22.45  | %                                                     |   | — |   |   | 196                  bps |   |
| Loan                  securities, fixed rate                         |   |                            | 22,405  |                   |   | 12,826                           |   |                         | 4.82   | %                                                     |   | 5.97 | % |   | — |   |
|                                                                 |   |                            |    |                   |   |                             |   |                         |   |                                                  |   |   |   |   |   |   |
| Total/Average                                                        |   | $                               | 464,831 |                   | $      | 425,205                          |   |                         | 100.00 | %                                                     |   | 6.93 | % |   | 228                  bps |   |

|  | (1) | Net                  of unamortized fees and discounts of $6,579, impairment charges                  of $32,594                  and negative mark to market adjustments of                  $453. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP        REALTY TRUST**

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

| Loan                Position |   | Property Type |        | City   |   |  State                   |   | FaceValue |        | Fixed                orFloat |   |  Rate                to Concord |   | Maturity                Date |   | ExtensionOptions |   |
|------------------------------|--------|--------------------|-------------|--------|--------|-------------------------------|--------|-----------|-------------|------------------------------|--------|--------------------------------------|--------|------------------------------|--------|------------------|--------|
|                         |   |               |        |   |   |                          |   |      |        |                         |   |                                 |   |                         |   |             |   |
| Whole                Loan    |   |               | Office      |   |   | Phoenix                       |   |      | AZ          |                         | $      | 20,000                               |   |                         | Float  |             |   | LIBOR                + 1.95% |   |   | 10/9/2009 |   |   | 2-1                yr options |   |
| Whole                Loan    |   |               | Office      |   |   | Rochester                     |   |      | NY          |                         |   | 6,300                                |   |                         | Fixed  |             |   | 6.40% |   |   | 3/1/2011 |   |   | None |   |
| Whole                Loan    |   |               | Industrial  |   |   | Phoenix                       |   |      | AZ          |                         |   | 24,000                               |   |                         | Fixed  |             |   | 6.35% |   |   | 12/1/2016 |   |   | None |   |
| B-Note                       |   |               | Hotel       |   |   | Tucson                        |   |      | AZ          |                         |   | 35,000                               |   |                         | Float  |             |   | LIBOR                + 2.35% |   |   | 8/9/2009 |   |   | 3-1                yr options |   |
| B-Note                       |   |               | Hotel       |   |   | Beverly                Hills  |   |      | CA          |                         |   | 33,000                               |   |                         | Float  |             |   | LIBOR                + 2.75% |   |   | 8/9/2009 |   |   | 3-1                yr options |   |
| B-Note                       |   |               | Hotel       |   |   | Englewood                     |   |      | CO          |                         |   | 9,000                                |   |                         | Float  |             |   | LIBOR                + 2.0% |   |   | 3/8/2010 |   |   | 2-1                yr options |   |
| B-Note                       |   |               | Office      |   |   | Various                       |   |      | CO          |                         |   | 17,264                               |   |                         | Float  |             |   | LIBOR                + 2.85% |   |   | 11/11/2009 |   |   | 3-1                yr options |   |
| B-Note                       |   |               | Office      |   |   | Farmers                Branch |   |      | TX          |                         |   | 15,000                               |   |                         | Fixed  |             |   | 8.62% |   |   | 6/6/2016 |   |   | None |   |
| B-Note                       |   |               | Office      |   |   | Dallas                        |   |      | TX          |                         |   | 14,600                               |   |                         | Float  |             |   | LIBOR                + 1.77% |   |   | 3/11/2009 |   |   | 3-1                yr options |   |
| B-Note                       |   |               | Office      |   |   | Atlanta                       |   |      | GA          |                         |   | 12,494                               |   |                         | Fixed  |             |   | 6.08% |   |   | 6/11/2010 |   |   | None |   |
| Mezzanine                    |   |               | Hotel       |   |   | New                York       |   |      | NY          |                         |   | 20,900                               |   |                         | Float  |             |   | LIBOR                + 2.98% |   |   | 7/12/2010 |   |   | 1-1                yr option |   |
| Mezzanine                    |   |               | Hotel       |   |   | New                York       |   |      | NY          |                         |   | 5,518                                |   |                         | Float  |             |   | LIBOR                + 2.98% |   |   | 7/12/2010 |   |   | 1-1                yr option |   |
| Mezzanine                    |   |               | Multifamily |   |   | New                York       |   |      | NY          |                         |   | 8,333                                |   |                         | Fixed  |             |   | 5.88% |   |   | 12/8/2016 |   |   | None |   |
| Mezzanine                    |   |               | Multifamily |   |   | New                York       |   |      | NY          |                         |   | 15,101                               |   |                         | Fixed  |             |   | 5.88% |   |   | 12/8/2016 |   |   | None |   |
| Mezzanine                    |   |               | Office      |   |   | New                York       |   |      | NY          |                         |   | 5,150                                |   |                         | Fixed  |             |   | 6.28% |   |   | 3/1/2012 |   |   | None |   |
| Mezzanine                    |   |               | Office      |   |   | Somers                        |   |      | NY          |                         |   | 20,000                               |   |                         | Float  |             |   | LIBOR                + 4.25% |   |   | 6/10/2009 |   |   | 3-1                yr options |   |
| Mezzanine                    |   |               | Office      |   |   | Various                       |   |      | Various     |                         |   | 19,993                               |   |                         | Float  |             |   | LIBOR                + 1.50% |   |   | 11/11/2009 |   |   | 3-1                yr options |   |
| Mezzanine                    |   |               | Office      |   |   | Islandia                      |   |      | NY          |                         |   | 17,222                               |   |                         | Fixed  |             |   | 8.53% |   |   | 8/6/2016 |   |   | None |   |
| Mezzanine                    |   |               | Office      |   |   | Honolulu                      |   |      | HI          |                         |   | 11,000                               |   |                         | Fixed  |             |   | 7.89% |   |   | 9/1/2016 |   |   | None |   |
| Mezzanine                    |   |               | Office      |   |   | New                York       |   |      | NY          |                         |   | 10,000                               |   |                         | Fixed  |             |   | 5.91% |   |   | 5/11/2020 |   |   | None |   |
| Mezzanine                    |   |               | Office      |   |   | Clifton                       |   |      | NJ          |                         |   | 3,191                                |   |                         | Fixed  |             |   | 10.96% |   |   | 12/1/2013 |   |   | None |   |
| Mezzanine                    |   |               | Retail      |   |   | Various                       |   |      | Various     |                         |   | 11,691                               |   |                         | Float  |             |   | LIBOR                + 1.75% |   |   | 8/9/2009 |   |   | 2-1                yr options |   |
| Mezzanine                    |   |               | Retail      |   |   | Various                       |   |      | Various     |                         |   | 3,309                                |   |                         | Float  |             |   | LIBOR                + 1.75% |   |   | 8/9/2009 |   |   | 2-1                yr options |   |
|                         |   |               |        |   |   |                          |   |      |        |                         |   |                                 |   |                         |   |             |   |   |   |   |   |   |   |   |   |
|                         |   |               |        |   |   |                          |   |      | Total  |                         | $      | 338,066                              |   |                         |   |             |   |   |   |   |   |   |   |   |   |

| Year                  of Maturity (1) |   | Number of LoanAssets Maturing |    |  Carrying Value             |   |  % of Total |   |
|---------------------------------------|--------|----------------------------------------------|---------|---------------------------------------|--------|----------------------------|--------|
|                                  |   |                                         |    |  (in                  thousands) |   |                       |   |
|                                  |   |                                         |    |                             |   |                       |   |
| 2008                                  |   |                                         | — |                                  | $      | —                    |   |   | — |   |
| 2009                                  |   |                                         | 9       |                                  |   | 174,825                    |   |   | 52.42 | % |
| 2010                                  |   |                                         | 4       |                                  |   | 46,778                     |   |   | 14.03 | % |
| 2011                                  |   |                                         | 1       |                                  |   | 6,300                      |   |   | 1.89 | % |
| 2012                                  |   |                                         | 1       |                                  |   | 5,038                      |   |   | 1.51 | % |
| Thereafter                            |   |                                         | 8       |                                  |   | 100,535                    |   |   | 30.15 | % |
| Total                                 |   |                                         | 23      |                                  | $      | 333,476                    |   |   | 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 SEPTEMBER 30, 2008**

|  Year of Maturity (1) |   | Number of LoanAssets Maturing |    |  Carrying Value           |   |  % of Total |   |
|-------------------------------------------|--------|----------------------------------------------|---------|-------------------------------------|--------|----------------------------|--------|
|                                      |   |                                         |    |  (in                thousands) |   |                       |   |
|                                      |   |                                         |    |                           |   |                       |   |
| 2008                                      |   |                                         | — |                                | $      | —                    |   |   | — |   |
| 2009                                      |   |                                         | — |                                |   | —                    |   |   | — |   |
| 2010                                      |   |                                         | 1       |                                |   | 11,360                     |   |   | 3.40 | % |
| 2011                                      |   |                                         | 11      |                                |   | 192,951                    |   |   | 57.86 | % |
| 2012                                      |   |                                         | 3       |                                |   | 28,630                     |   |   | 8.59 | % |
| Thereafter                                |   |                                         | 8       |                                |   | 100,535                    |   |   | 30.15 | % |
| Total                                     |   |                                         | 23      |                                | $      | 333,476                    |   |   | 100.00 | % |

|  | (1) | The                  calculation of weighted average maturity is based upon the remaining                  term,                  assuming the exercise of all extension options available to the                  borrower                  and no prepayments                  occur. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Description      |   |  FaceValue |    |  AmortizedCost |   |  GrossUnrealizedGain (Loss) |   |  ImpairmentLoss |   |  CarryingValue |   |
|------------------------------|--------|-----------------|---------|---------------------|--------|---------------------------------------|--------|----------------------|--------|---------------------|--------|
|                         |   |            |    |           |   |                             |   |            |   |           |   |
| Floating                rate |   | $               | 104,360 |                | $      | 104,325                               |   | $                    | (573   | )                   | $      | (24,849 | ) | $ | 78,903 |   |
| Fixed                rate    |   |            | 22,405  |                |   | 20,451                                |   |                 | 120    |                |   | (7,745 | ) |   | 12,826 |   |
| Total                        |   | $               | 126,765 |                | $      | 124,776                               |   | $                    | (453   | )                   | $      | (32,594 | ) | $ | 91,729 |   |

|                            |   |                      |   |                             |   |                      |   | Ratings                (1) |    |          |    |
|---------------------------------|--------|---------------------------|--------|----------------------------------|--------|---------------------------|--------|----------------------------|---------|---------------|---------|
| LoanPosition                    |   | Asset                Type |   | Certificate                Class |   | Face                Value |   | Moody’s              |    |  S&P |    | Fitch |   | Coupon |   |
|                            |   |                      |   |                             |   |                      |   |                       |    |          |    |   |   |   |   |
| CSMC                2006 TF2A   |   | Bond                      |   |                             | H      |                      | $      | 9,000                      |    |          | Baa1    |   |   | BBB+ |   |   | BBB+ |   |   | LIBOR                + 0.65 |   |
| CSMC                2007 TFLA   |   | Bond                      |   |                             | K      |                      |   | 2,000                      |    |          | Baa3    |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.05 |   |
| BSCMS                2007 BBA8  |   | Bond                      |   |                             | K      |                      |   | 6,500                      |    |          | Baa3    |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.20 |   |
| MSC                2007 XFLA    |   | Bond                      |   |                             | K      |                      |   | 10,000                     |    |          | — |   |   | BBB- |   |   | BBB |   |   | LIBOR                + 1.25 |   |
| WBCMT                2007 WHL8  |   | Bond                      |   |                             | L      |                      |   | 3,800                      |    |          | — |   |   | BBB- |   |   | BBB- |   |   | LIBOR                + 1.75 |   |
| BSCMS                2006 BBA7  |   | Bond                      |   |                             | K      |                      |   | 4,786                      |    |          | — |   |   | BBB- |   |   | BBB- |   |   | LIBOR                + 1.70 |   |
| COMM                2005 FL11   |   | Bond                      |   |                             | L      |                      |   | 10,918                     |    |          | — |   |   | BBB- |   |   | BBB- |   |   | LIBOR                + 2.25 |   |
| CSMC                2007 TFLA   |   | Bond                      |   |                             | L      |                      |   | 3,500                      |    |          | Ba1     |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.90 |   |
| G                Force CDO 2006 |   | Bond                      |   |                             | J      |                      |   | 11,000                     |    |          | — |   |   | CCC- |   |   | B- |   |   | 5.6% |   |
| LBFRC                06 LLFA    |   | Bond                      |   |                             | L      |                      |   | 9,393                      |    |          | — |   |   | BB |   |   | BBB- |   |   | LIBOR                + 1.70 |   |
| BALL                2004 BBA4   |   | Bond                      |   |                             | K      |                      |   | 7,000                      |    |          | — |   |   | B+ |   |   | B |   |   | LIBOR                + 3.10 |   |
| BSCMS                2004 BA5A  |   | Bond                      |   |                             | K      |                      |   | 13,000                     |    |          | — |   |   | B+ |   |   | BBB- |   |   | LIBOR                + 3.25 |   |
| CSMC                2006 TF2A   |   | Rake                Bond  |   |                             | ARGB   |                      |   | 5,500                      |    |          | Baa3    |   |   | BB |   |   | BB- |   |   | LIBOR                + 1.30 |   |
| BACM                2005 6      |   | Rake                Bond  |   |                             | KCE    |                      |   | 11,405                     |    |          | — |   |   | BBB |   |   | — |   |   | 6.129% |   |
| GCCFC                2006 FL4A  |   | Rake                Bond  |   |                             | N-MET  |                      |   | 2,151                      |    |          | — |   |   | — |   |   | BBB |   |   | LIBOR                + 1.15 |   |
| GSMS                2007 EOP    |   | Rake                Bond  |   |                             | K      |                      |   | 2,000                      |    |          | — |   |   | BBB |   |   | BBB- |   |   | LIBOR                + 1.05 |   |
| GCCFC                2006 FL4A  |   | Rake                Bond  |   |                             | O-MET  |                      |   | 4,812                      |    |          | — |   |   | — |   |   | BBB- |   |   | LIBOR                + 1.35 |   |
| GSMS                2007 EOP    |   | Rake                Bond  |   |                             | L      |                      |   | 10,000                     |    |          | — |   |   | BB+ |   |   | BB+ |   |   | LIBOR                + 1.30 |   |
|                            |   |                      |   |                             |   |                      |   |                       |    |          |    |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |                      |   |                             |   | Total                |   | $                          | 126,765 |          |    |   |   |   |   |   |   |   |   |   |   |   |

| (1) | A                (-) indicates that the agency has not published a rating for this                security. |
|-----|-------------------------------------------------------------------------------------------------------------|

----

**WINTHROP        REALTY TRUST**

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

|                                                                 |   | FaceValue                       |    | CarryingValue (1) |   | Allocation byInvestment Type |   | Fixed Rate:Average Yield |   | Floating Rate:Average Spreadover LIBOR |   |
|----------------------------------------------------------------------|--------|---------------------------------|---------|------------------------|--------|----------------------------------------|--------|------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                 |   | (in                  thousands) |    |                   |   |                                   |   |                               |   |
|                                                                 |   |                            |    |                   |   |                                   |   |                               |   |                                                  |   |
| Whole                  loans, floating rate                          |   | $                               | 108,144 |                   | $      | 105,144                                |   |                               | 16.80  | %                                                     |   | — |   |   | 182                  bps |   |
| Whole                  loans, fixed rate                             |   |                            | 39,900  |                   |   | 34,900                                 |   |                               | 6.20   | %                                                     |   | 5.71 | % |   | — |   |
| Subordinate                  interests in whole loans, floating rate |   |                            | 147,708 |                   |   | 147,091                                |   |                               | 22.96  | %                                                     |   | — |   |   | 215                  bps |   |
| Subordinate                  interests in whole loans, fixed rate    |   |                            | 15,750  |                   |   | 14,265                                 |   |                               | 2.45   | %                                                     |   | 8.63 | % |   | — |   |
| Mezzanine                  loans, floating rate                      |   |                            | 190,334 |                   |   | 187,352                                |   |                               | 29.58  | %                                                     |   | — |   |   | 215                  bps |   |
|                                                                 |   |                            |    |                   |   |                                   |   |                               |   |                                                  |   |   |   |   |   |   |
| Mezzanine                  loans, fixed rate                         |   |                            | 64,091  |                   |   | 60,636                                 |   |                               | 9.96   | %                                                     |   | 6.81 | % |   | — |   |
|                                                                 |   |                            |    |                   |   |                                   |   |                               |   |                                                  |   |   |   |   |   |   |
| Loan                  securities, floating rate                      |   |                            | 77,535  |                   |   | 43,396                                 |   |                               | 12.05  | %                                                     |   | — |   |   | 141                  bps |   |
|                                                                 |   |                            |    |                   |   |                                   |   |                               |   |                                                  |   |   |   |   |   |   |
| Total/Average                                                        |   | $                               | 643,462 |                   | $      | 592,784                                |   |                               | 100.00 | %                                                     |   | 6.68 | % |   | 197                  bps |   |

|  | (1) | Net                of unamortized fees and discounts of $8,623, loan loss reserves of                $8,200,                impairment charges of $34,277, and a positive mark to market adjustment                of                $422. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Loan                Position  |   | PropertyType             |    |  City                    |   | State  |    | FaceValue |   | Fixed                orFloat |   | Rate                to Concord |   | MaturityDate |   | ExtensionOptions             |   |
|-------------------------------|--------|--------------------------|---------|-------------------------------|--------|--------|---------|-----------|--------|------------------------------|--------|--------------------------------|--------|--------------|--------|------------------------------|--------|
|                          |   |                     |    |                          |   |   |    |      |   |                         |   |                           |   |         |   |                         |   |
| Whole                Loan (1) |   | Hotel                    |    | Palm                Beach     |   |   | FL      |      | $      | 19,000                       |   |                           | Fixed  |         |   | 12%                          |   |   | 6/30/2009 |   |   | 1-1                yr option |   |
| Whole                Loan (2) |   | Multifamily              |    | Columbus                      |   |   | OH      |      |   | 20,900                       |   |                           | Fixed  |         |   | 6.56%                        |   |   | 11/21/2011 |   |   | None |   |
| Whole                Loan     |   | Office                   |    | San                Francisco  |   |   | CA      |      |   | 41,600                       |   |                           | Float  |         |   | LIBOR                + 1.59% |   |   | 1/9/2010 |   |   | 2-1                yr options |   |
| Whole                Loan (3) |   | Office                   |    | San                Francisco  |   |   | CA      |      |   | 29,325                       |   |                           | Float  |         |   | LIBOR                + 1.59% |   |   | 1/9/2010 |   |   | 2-1                yr options |   |
| Whole                Loan (4) |   | Office                   |    | Fort                Lee       |   |   | NJ      |      |   | 28,000                       |   |                           | Float  |         |   | LIBOR                + 2.50% |   |   | 3/9/2009 |   |   | 3-1                yr options |   |
| Whole                Loan     |   | Office                   |    | Phoenix                       |   |   | AZ      |      |   | 9,219                        |   |                           | Float  |         |   | LIBOR                + 1.95% |   |   | 11/9/2009 |   |   | 2-1                yr options |   |
| B-Note                        |   | Hotel                    |    | New                York       |   |   | NY      |      |   | 30,700                       |   |                           | Float  |         |   | LIBOR                + 2.0%  |   |   | 11/9/2008 |   |   | 3-1                yr options |   |
| B-Note                        |   | Hotel                    |    | New                York       |   |   | NY      |      |   | 30,000                       |   |                           | Float  |         |   | LIBOR                + 2.0%  |   |   | 11/9/2008 |   |   | 3-1                yr options |   |
| B-Note                        |   | Hotel                    |    | Various                       |   |   | Various |      |   | 13,448                       |   |                           | Float  |         |   | LIBOR                + 2.15% |   |   | 11/9/2009 |   |   | 3-1                yr options |   |
| B-Note                        |   | Hotel                    |    | Honolulu                      |   |   | HI      |      |   | 6,452                        |   |                           | Float  |         |   | LIBOR                + 2.25% |   |   | 10/1/2009 |   |   | 3-1                yr options |   |
| B-Note                        |   | Office                   |    | Greenwich                     |   |   | CT      |      |   | 26,000                       |   |                           | Float  |         |   | LIBOR                + 2.85% |   |   | 3/9/2009 |   |   | 3-1                yr options |   |
| B-Note                        |   | Office                   |    | Farmers                Branch |   |   | TX      |      |   | 15,750                       |   |                           | Fixed  |         |   | 8.62%                        |   |   | 6/6/2016 |   |   | None |   |
| B-Note                        |   | Office                   |    | Houston                       |   |   | TX      |      |   | 15,000                       |   |                           | Float  |         |   | LIBOR                + 1.25% |   |   | 7/1/2009 |   |   | 2-1                yr options |   |
| B-Note                        |   | Office                   |    | New                York       |   |   | NY      |      |   | 15,000                       |   |                           | Float  |         |   | LIBOR                + 1.51% |   |   | 11/1/2009 |   |   | 2-1                yr options |   |
| B-Note                (5)     |   | Office                   |    | Dallas                        |   |   | TX      |      |   | 1,512                        |   |                           | Float  |         |   | LIBOR                + 1.77% |   |   | 3/11/2009 |   |   | 3-1                yr options |   |
| B-Note                (6)     |   | Office                   |    | San                Antonio    |   |   | TX      |      |   | 9,146                        |   |                           | Float  |         |   | LIBOR                + 3.25% |   |   | 1/10/2009 |   |   | 3-1                yr options |   |
| C-Note                        |   | Office                   |    | San                Antonio    |   |   | TX      |      |   | 450                          |   |                           | Float  |         |   | LIBOR                + 3.25% |   |   | 1/10/2009 |   |   | 3-1                yr options |   |
| Mezzanine                     |   | Hotel                    |    | New                York       |   |   | NY      |      |   | 71,530                       |   |                           | Float  |         |   | LIBOR                + 1.85% |   |   | 2/1/2009 |   |   | 3-1                yr options |   |
| Mezzanine                     |   | Hotel                    |    | Various                       |   |   | Various |      |   | 50,000                       |   |                           | Float  |         |   | LIBOR                + 3.25% |   |   | 5/9/2012 |   |   | None |   |
| Mezzanine                     |   | Hotel                    |    | New                York       |   |   | NY      |      |   | 6,082                        |   |                           | Float  |         |   | LIBOR                + 2.98% |   |   | 7/12/2010 |   |   | 1-1                yr option |   |
| Mezzanine                     |   | Hotel                    |    | Various                       |   |   | Various |      |   | 5,499                        |   |                           | Float  |         |   | LIBOR                + 1.55% |   |   | 5/12/2009 |   |   | 1-1                yr option |   |
| Mezzanine                     |   | Hotel                    |    | Catalina                      |   |   | AZ      |      |   | 4,515                        |   |                           | Fixed  |         |   | 14.00%                       |   |   | 1/1/2013 |   |   | None |   |
| Mezzanine                     |   | Industrial               | Shirley |                          |   | NY     |    |      | 1,500  |                         |   | Fixed                          |   |         | 12.00% |                         |   | 5/1/2016 |   |   | None |   |
| Mezzanine                     |   | Mixed                Use |    | New                York       |   |   | NY      |      |   | 3,501                        |   |                           | Fixed  |         |   | 6.79%                        |   |   | 7/11/2017 |   |   | None |   |
| Mezzanine                     |   | Multifamily              |    | Various                       |   |   | Various |      |   | 20,000                       |   |                           | Float  |         |   | LIBOR                + 1.23% |   |   | 7/9/2009 |   |   | 3-1                yr options |   |
| Mezzanine                     |   | Multifamily              |    | Meriden                       |   |   | CT      |      |   | 3,500                        |   |                           | Fixed  |         |   | 12.00%                       |   |   | 2/1/2012 |   |   | None |   |

----

**WINTHROP        REALTY TRUST**

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

| LoanPosition |   |        | Property                Type |                       |   | City   |   |   | State  |   |   | FaceValue |   |   | Fixed                orFloat |                         |   | Rate                to Concord |      |   | MaturityDate |                          |   | ExtensionOptions |   |
|--------------|--------|-------------|------------------------------|----------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|------------------------------|------------------------------|--------|--------------------------------|-----------|--------|--------------|-------------------------------|--------|------------------|--------|
|         |   |        |                         |                       |   |   |   |   |   |   |   |      |   |   |                         |                         |   |                           |      |   |         |                          |   |             |   |
| Mezzanine    |   | Multifamily |                         | Albuquerque                |   |   | NM     |   |   | 1,466  |   |      | Fixed  |   |                         | 12.50%                       |   |                           | 11/1/2009 |   |         | None                          |   |
| Mezzanine    |   | Multifamily |                         | New              York      |   |   | NY     |   |   | 1,565  |   |      | Fixed  |   |                         | 5.88%                        |   |                           | 12/8/2016 |   |         | None                          |   |
| Mezzanine    |   | Office      |                         | New              York      |   |   | NY     |   |   | 20,000 |   |      | Fixed  |   |                         | 6.28%                        |   |                           | 3/1/2012  |   |         | None                          |   |
| Mezzanine    |   | Office      |                         | New              York      |   |   | NY     |   |   | 17,000 |   |      | Fixed  |   |                         | 6.50%                        |   |                           | 2/1/2017  |   |         | None                          |   |
| Mezzanine    |   | Office      |                         | Dallas                     |   |   | TX     |   |   | 7,644  |   |      | Fixed  |   |                         | 11.04%                       |   |                           | 9/8/2010  |   |         | None                          |   |
| Mezzanine    |   | Office      |                         | Various                    |   |   | CA     |   |   | 7,223  |   |      | Float  |   |                         | LIBOR                + 2.55% |   |                           | 1/9/2009  |   |         | 3-1                yr options |   |
| Mezzanine    |   | Office      |                         | East              Hartford |   |   | CT     |   |   | 1,900  |   |      | Fixed  |   |                         | 12.00%                       |   |                           | 10/1/2016 |   |         | None                          |   |
| Mezzanine    |   | Office      |                         | Cerritios                  |   | CA     |   |   | 1,500  |   |   | Fixed     |   |   | 10.00%                       |                         |   | 1/5/2017                       |      |   | None         |                          |
| Mezzanine    |   | Various     |                         | Pasadena                   |   |   | CA     |   |   | 30,000 |   |      | Float  |   |                         | LIBOR                + 3.25% |   |                           | 2/9/2009  |   |         | 1-1                yr option  |   |
|         |   |        |                         |                       |   |   |   |   |   |   |   |      |   |   |                         |                         |   |                           |      |   |         |                          |   |             |   |
|         |   |        |                         |                       |   |   |   |   | Total  |   | $      | 565,927   |   |   |                         |                         |   |                           |      |   |         |                          |   |             |   |

| (1) | Concord                entered into an agreement with the borrower which provides for interest                from September 2008 through December 2008 to accrue and Concord received                additional collateral. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Loan                is in default. A receiver has been appointed with respect to the                properties and Concord is proceeding with an action to foreclose                on the                properties. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Face                value does not include future funding requirements of $4,175 which                is                subject to satisfaction of certain conditions by the                borrower |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Property                is currently 100% vacant. |
|-----|---------------------------------------------------|

| (5) | Face                value does not include future funding requirements of $9,388 which                is                subject to satisfaction of certain conditions by the                borrower. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Face                value does not include future funding requirements of $3,829 which                is                subject to satisfaction of certain conditions by the                borrower. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Year of Maturity (1) |   | Number of LoanAssets Maturing |   | Carrying Value(in thousands) |   |  % of Total |   |
|-------------------------------------------|--------|----------------------------------------------|--------|----------------------------------------|--------|----------------------------|--------|
|                                      |   |                                         |   |                                   |   |                       |   |
| 2008                                      |   |                                         | 2      |                                   | $      | 60,671                     |   |   | 11.04 | % |
| 2009                                      |   |                                         | 17     |                                   |   | 269,567                    |   |   | 49.07 | % |
| 2010                                      |   |                                         | 4      |                                   |   | 84,326                     |   |   | 15.35 | % |
| 2011                                      |   |                                         | 1      |                                   |   | 18,900                     |   |   | 3.44 | % |
| 2012                                      |   |                                         | 3      |                                   |   | 73,049                     |   |   | 13.30 | % |
| Thereafter                                |   |                                         | 8      |                                   |   | 42,875                     |   |   | 7.80 | % |
| Total                                     |   |                                         | 35     |                                   | $      | 549,388                    |   |   | 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 in either case may be available to the                    borrower. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP        REALTY TRUST**

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

|  Year of Maturity (1) |   | Number of LoanAssets Maturing |    | Carrying Value(in thousands) |   |  % of Total |   |
|-------------------------------------------|--------|----------------------------------------------|---------|----------------------------------------|--------|----------------------------|--------|
|                                      |   |                                         |    |                                   |   |                       |   |
| 2008                                      |   |                                         | — |                                   | $      | —                    |   |   | — |   |
| 2009                                      |   |                                         | 1       |                                   |   | 1,432                      |   |   | 0.26 | % |
| 2010                                      |   |                                         | 3       |                                   |   | 53,318                     |   |   | 9.70 | % |
| 2011                                      |   |                                         | 10      |                                   |   | 147,959                    |   |   | 26.93 | % |
| 2012                                      |   |                                         | 13      |                                   |   | 303,803                    |   |   | 55.30 | % |
| Thereafter                                |   |                                         | 8       |                                   |   | 42,876                     |   |   | 7.81 | % |
| Total                                     |   |                                         | 35      |                                   | $      | 549,388                    |   |   | 100.00 | % |

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

| Industry                 |   | %                of Face Value |    |
|--------------------------|--------|--------------------------------|---------|
|                     |   |                           |    |
| Hospitality              |   |                           | 41.92   | % |
| Office                   |   |                           | 43.51   | % |
| Mixed                Use |   |                           | 5.92    | % |
| Retail                   |   |                           | — |   |
| Industrial               |   |                           | 0.27    | % |
| Multi-family             |   |                           | 8.38    | % |
|                     |   |                           | 100.00  | % |

|   Description      |   |  FaceValue |   |  AmortizedCost |   |  GrossUnrealizedGain                (Loss) |   | ImpairmentLoss |   | CarryingValue |   |
|------------------------------|--------|-----------------|--------|---------------------|--------|-------------------------------------------------|--------|----------------|--------|---------------|--------|
|                         |   |       |   |           |   |                                       |   |      |   |     |   |
| Floating                rate |   | $               | 77,535 |                | $      | 77,252                                          |   | $              | 422    |          | $      | (34,278 | ) | $ | 43,396 |   |
| Total                        |   | $               | 77,535 |                | $      | 77,252                                          |   | $              | 422    |          | $      | (34,278 | ) | $ | 43,396 |   |

----

**WINTHROP        REALTY TRUST**

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

|                           |   |                      |                     |                             |   |                      |   | Ratings                (1) |   |    |   |
|--------------------------------|--------|---------------------------|--------------------------|----------------------------------|--------|---------------------------|--------|----------------------------|--------|---------|--------|
|  Position-Loan            |   | Asset                Type |                     | Certificate                Class |   | Face                Value |   | Moody’s              |   | S&P |   | Fitch |   | Coupon |   |
|                           |   |                      |                     |                             |   |                      |   |                       |   |    |   |   |   |   |   |
| CBRE                2007-1A    |   |                      | Bond                     |                             |   | F                         |   | $                          | 12,500 |    |   | Baa1 |   |   | BBB+ |   |   | BBB+ |   |   | 3M                L                + 1.10 |   |
| NEWCA                2006 8A   |   |                      | Bond                     |                             |   | 8                         |   |                       | 11,500 |    |   | Baa1 |   |   | — |   |   | BBB+ |   |   | LIBOR                + 1.45 |   |
| WBCMT                2007 WHL8 |   |                      | Bond                     |                             |   | K                         |   |                       | 5,197  |    |   | — |   |   | BBB |   |   | BBB |   |   | LIBOR                + 1.25 |   |
| WBCMT                2007 WHL8 |   |                      | Bond                     |                             |   | L                         |   |                       | 8,703  |    |   | — |   |   | BBB- |   |   | BBB- |   |   | LIBOR                + 1.75 |   |
| CSMC                2007 TFLA  |   |                      | Bond                     |                             |   | L                         |   |                       | 1,500  |    |   | Ba1 |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.90 |   |
| MSC                2006 XLF    |   |                      | Bond                     |                             |   | M                         |   |                       | 14,246 |    |   | — |   |   | D |   |   | BB+ |   |   | LIBOR                + 1.65 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-2600                    |   |                       | 1,381  |    |   | — |   |   | AA- |   |   | — |   |   | LIBOR                + 0.65 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-WSC                     |   |                       | 1,276  |    |   | — |   |   | A- |   |   | — |   |   | LIBOR                + 0.75 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-2600                    |   |                       | 1,966  |    |   | — |   |   | A- |   |   | — |   |   | LIBOR                + 0.80 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-PDS                     |   |                       | 1,094  |    |   | — |   |   | BBB+ |   |   | — |   |   | LIBOR                + 1.10 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | P-2600                    |   |                       | 1,303  |    |   | — |   |   | B |   |   | — |   |   | LIBOR                + 1.40 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-MON                     |   |                       | 1,133  |    |   | — |   |   | B |   |   | — |   |   | LIBOR                + 1.40 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-WSC                     |   |                       | 1,119  |    |   | — |   |   | BBB |   |   | — |   |   | LIBOR                + 1.30 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-SCR                     |   |                       | 894    |    |   | — |   |   | BBB |   |   | — |   |   | LIBOR                + 1.40 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | Q-2600                    |   |                       | 1,714  |    |   | — |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.60 |   |
| WBCMT                2007 WHL8 |   |                      | Rake                Bond |                             |   | MH2                       |   |                       | 3,200  |    |   | — |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.05 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-MON                     |   |                       | 1,474  |    |   | — |   |   | B- |   |   | — |   |   | LIBOR                + 1.60 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-PDS                     |   |                       | 1,077  |    |   | — |   |   | BBB- |   |   | — |   |   | LIBOR                + 1.60 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | P-WSC                     |   |                       | 839    |    |   | — |   |   | BB+ |   |   | — |   |   | LIBOR                + 1.60 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-MET                     |   |                       | 1,784  |    |   | — |   |   | — |   |   | BBB- |   |   | LIBOR                + 1.35 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | N-NZH                     |   |                       | 2,257  |    |   | — |   |   | — |   |   | BBB- |   |   | LIBOR                + 1.60 |   |
| GCCFC                2006 FL4A |   |                      | Rake                Bond |                             |   | O-SCR                     |   |                       | 1,378  |    |   | — |   |   | — |   |   | BBB- |   |   | LIBOR                + 1.60 |   |
|                           |   |                      |                     |                             |   |                      |   |                       |   |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                           |   |                      |                     |                             |   | Total                |   | $                          | 77,535 |    |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | A                (-) indicates that the agency has not published a rating for this                security. |
|-----|-------------------------------------------------------------------------------------------------------------|

**Marc      Realty **

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**WINTHROP        REALTY TRUST**

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

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

|                                                                                                                             |   | Change                in LIBOR |    |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
|                                                                                                                             |   | -3%                            |    | -2% |   | -1% |   | 1% |   | 2% |   | 3% |   |
|                                                                                                                             |   |                           |    |   |   |   |   |   |   |   |   |   |   |
| Change                in consolidated interest expense                                                                           |   |                           | (2,444  | ) |   | (1,629 | ) |   | (815 | ) |   | 815 |   |   | 1,629 |   |   | 2,444 |   |
| Pro-rata                share of change in interest expense                of debt on non-consolidated entity                (1) |   |                           | (8,127  | ) |   | (5,418 | ) |   | (2,709 | ) |   | 2,709 |   |   | 5,418 |   |   | 8,127 |   |
| Minority                partners share                                                                                           |   |                           | 114     |   |   | 76 |   |   | 38 |   |   | (38 | ) |   | (76 | ) |   | (114 | ) |
| Proforma                (increase) decrease in net income                                                                        |   | $                              | (10,457 | ) | $ | (6,971 | ) | $ | (3,486 | ) | $ | 3,486 |   | $ | 6,971 |   | $ | 10,457 |   |

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

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**WINTHROP        REALTY TRUST**

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

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

**Other      Matters**

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**WINTHROP        REALTY TRUST**

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

**PART      II. OTHER INFORMATION**

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

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**WINTHROP        REALTY TRUST**

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

|                                   | Winthrop                Realty Trust |
|----------------------------------------|--------------------------------------|
|                                   |                                 |   |
| Date:                November 10, 2008 | By:                                  | /s/                Michael L. Ashner |
|                                   |                                 | Michael                L. Ashner |
|                                   |                                 | Chief                Executive Officer |
|                                   |                                 |   |
| Date:                November 10, 2008 | By:                                  | /s/                Thomas C. Staples |
|                                   |                                 | Thomas                C. Staples |
|                                   |                                 | Chief                Financial Officer |

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**WINTHROP        REALTY TRUST**

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

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

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**WINTHROP        REALTY TRUST**

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

| 10.6   |   | Amendment                No. 1 to Exclusivity Agreement, dated November 7, 2005 - Incorporated                by                reference to Exhibit 10.7 to the Trust’s Form 8-K filed November 10,                2005.                                                                                                                                                                                                                                                                                                                      |   | -      |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.7   |   | Covenant                Agreement between the Trust and FUR Investors, LLC - Incorporated                by                reference to Exhibit 10.5 to the Trust’s Form 8-K filed December 1,                2003.                                                                                                                                                                                                                                                                                                                            |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.8   |   | Loan                Agreement, dated November 18, 2004, among FT-Fin Acquisition LLC,                Keybank                National Association, Newstar CP Funding LLC, Keybank National                Association, as agent for itself and such other lending institutions,                and                Keybanc Capital Markets, as the Arranger - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed November 23,                2004.                                           |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.9   |   | Loan                Modification Agreement, dated June 30, 2006, among FT-Fin Acquisition                LLC,                Keybank National Association, Newstar CP Funding LLC, Keybank National                Association, as agent for itself and such other lending institutions,                and                Keybank Capital Markets, as the Arranger - Incorporated by reference                to                Exhibit 10.11 to the Trust’s Quarterly report on Form 10-Q for the period                ended June 30, 2006. |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.10  |   | Form                of Mortgage, dated November 18, 2004, in favor of Keybank National                Association - Incorporated by reference to Exhibit 10.2 to the Trust’s                Form 8-K filed November 23, 2004.                                                                                                                                                                                                                                                                                                                  |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.11  |   | Ownership                Interest Pledge Agreement, dated November 18, 2004, from FT-Fin                Acquisition LLC to Keybank National Association - Incorporated by                reference to Exhibit 10.3 to the Trust’s Form 8-K filed November 23,                2004.                                                                                                                                                                                                                                                             |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.12  |   | Guaranty,                dated as of November 18, 2004, by First Union Real Estate Equity                and                Mortgage Investments in favor of Keybank National Association, as                the                agent - Incorporated by reference to Exhibit 10.4 to the Trust’s Form 8-K                filed November 23, 2004.                                                                                                                                                                                              |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.13  |   | Indemnity                Regarding Hazardous Materials, dated as of November 18, 2004, by                First                Union Real Estate Equity and Mortgage Investments in favor of Keybank                National Association, as the agent - Incorporated by reference to                Exhibit                10.5 to the Trust’s Form 8-K filed November 23, 2004.                                                                                                                                                               |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.14  |   | Amended                and Restated Omnibus Agreement, dated March 16, 2005, among Gerald                Nudo,                Laurence Weiner and First Union REIT L.P. - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed March 18, 2005                                                                                                                                                                                                                                                 |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.15  |   | Securities                Purchase Agreement, dated February 16, 2005, between First Union                Real                Estate Equity and Mortgage Investments and Kimco Realty Corporation                -                Incorporated by reference to Exhibit 10 to the Trust’s Form 8-K filed                February 18, 2005.                                                                                                                                                                                                      |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.16  |   | Securities                Purchase Agreement, dated February 25, 2005, between First Union                Real                Estate Equity and Mortgage Investments, Perrin Holden & Davenport                Capital Corp. and the Investors named therein - Incorporated by reference                to Exhibit 10.1 to the Trust’s Form 8-K filed March 3,                2005.                                                                                                                                                        |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.17  |   | Securities                Purchase Agreement, dated June 15, 2005, between First Union Real                Estate                Equity and Mortgage Investments, Perrin Holden & Davenport Capital                Corp. and the Investors named therein - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed June 21, 2005.                                                                                                                                                            |   | -      |

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**WINTHROP        REALTY TRUST**

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

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

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**WINTHROP        REALTY TRUST**

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

| 23.1   |   | Consent                of Independent Accounting Firm - PricewaterhouseCoopers                LLP |   | *      |
|--------|--------|---------------------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                                              |   |   |
| 31     |   | Certifications                Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.          |   | *      |
|   |   |                                                                                              |   |   |
| 32     |   | Certification                Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.           |   | *      |
|   |   |                                                                                              |   |   |
| 99.1   |   | Text                of Item 1.01 to the Trust’s Form 8-K filed August 4, 2008               |   | *      |

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