**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSIONWashington, D.C.      20549**

**FORM      10-Q**

**QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF      1934**

**TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT 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)                           |
|                                                                                         |   |                                                |
|                                                                                         |        |                                                     |

|   | (617)                570-4614                                                            |  |
|--------|------------------------------------------------------------------------------------------|--|
|   | (Registrant’s                telephone number, including area                code) |  |

----

|                           | INDEX                                                                                                                                                                                                            |   |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                           |                                                                                                                                                                                                             |   |
|                           |                                                                                                                                                                                                             |   |
| Part                  I.       | Financial                  Information                                                                                                                                                                           | Page   |
|                           |                                                                                                                                                                                                             |        |
| Item                    1.     | Financial                  Statements (Unaudited):                                                                                                                                                               |        |
|                           |                                                                                                                                                                                                             |        |
|                           | Consolidated                  Balance Sheets as of September 30, 2007                  and Consolidated Balance Sheets as of December 31,                  2006                                        | 3      |
|                           |                                                                                                                                                                                                             |        |
|                 | Consolidated                  Statements of Operations and                  Comprehensive Income for the Three and Nine Months Ended September                  30, 2007 and September 30, 2006   | 4      |
|                           |                                                                                                                                                                                                             |        |
|                      | Consolidated                  Statement of Shareholders’ Equity for                  the Nine Months Ended September 30, 2007                                                                    | 5      |
|                           |                                                                                                                                                                                                             |   |
|                 | Consolidated                  Statements of Cash Flows for the Nine                  Months Ended September 30, 2007 and September 30,                  2006                                           | 6      |
|                           |                                                                                                                                                                                                             |        |
|                           | Notes                  to                  Consolidated Financial Statements                                                                                                                                     | 8      |
|                           |                                                                                                                                                                                                             |        |
| Item                    2.     | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                                                    | 27     |
|                                |                                                                                                                                                                                                             |        |
| Item                    3.     | Quantitative                  and                  Qualitative Disclosure about Market Risk                                                                                                                      | 37     |
|                                |                                                                                                                                                                                                             |        |
| Item                    4.     | Controls                  and                  Procedures                                                                                                                                                        | 38     |
|                           |                                                                                                                                                                                                             |        |
| Part                  II.      | Other                  Information                                                                                                                                                                               |        |
|                           |                                                                                                                                                                                                             |   |
| Item                    6.     | Exhibits                                                                                                                                                                                                         | 40     |
|                           |                                                                                                                                                                                                             |        |
| Signatures                     |                                                                                                                                                                                                             | 41     |
|                           |                                                                                                                                                                                                             |        |
| Exhibit                  Index |                                                                                                                                                                                                             | 42     |

----

| **Item                  1. Financial Information**                                                                                                      |   |                                    |    |   |                                   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|--------|----------------------------------------|--------|
|                                                                                                                                                    |   |                                    |    |   |                                   |   |
| **WINTHROP                  REALTY TRUST**                                                                                                              |   |
| **FORM                  10-Q - SEPTEMBER 30, 2007**                                                                                                     |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |
| **CONSOLIDATED                  BALANCE SHEETS**                                                                                                        |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |
| **(Unaudited)**                                                                                                                                         |   |
| (In                  thousands, except share and per share data)                                                                                        |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |
|                                                                                                                                                    |   | **September                  30, 2007** |    |   | **December                  31, 2006** |   |
| **ASSETS**                                                                                                                                              |   |                                    |    |   |                                   |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |
|   Investments                  in real estate, at cost                                                                                        |   |                                    |    |   |                                   |   |
|     Land                                                                                                                            |   | $                                       | 20,169  |   |                                   | $      | 19,510 |   |
|     Buildings                  and improvements                                                                                     |   |                                    | 234,359 |   |                                   |   | 227,891 |   |
|                                                                                                                                                    |   |                                    | 254,528 |   |                                   |   | 247,401 |   |
|     Less                  - Accumulated depreciation                                                                                |   |                                    | (17,557 | )      |                                   |   | (12,932 | ) |
|   Investments                  in real estate, net                                                                                            |   |                                    | 236,971 |   |                                   |   | 234,469 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Cash                  and cash equivalents                                                                                                  |   |                                    | 55,370  |   |                                   |   | 89,463 |   |
|   Restricted                  cash held in escrows                                                                                            |   |                                    | 5,532   |   |                                   |   | 4,447 |   |
|   Mortgage-backed                  securities available for sale pledged                                                                      |   |                                    |    |   |                                   |   |   |   |
|       under                  repurchase agreements                                                                        |   |                                    | 86,481  |   |                                   |   | 115,810 |   |
|   Loans                  receivable, net of reserve of $1,266 and $0, respectively                                                            |   |                                    | 18,622  |   |                                   |   | 81,415 |   |
|   Accounts                  receivable, net of reserve                                                                                        |   |                                    |    |   |                                   |   |   |   |
|       of                  $72 and $1, respectively                                                                        |   |                                    | 10,877  |   |                                   |   | 12,412 |   |
|   Available                  for sale securities                                                                                              |   |                                    | 73,834  |   |                                   |   | 95,148 |   |
|   Preferred                  equity investment                                                                                                |   |                                    | 74,618  |   |                                   |   | 73,127 |   |
|   Equity                  investments                                                                                                         |   |                                    | 166,759 |   |                                   |   | 98,101 |   |
|   Lease                  intangibles, net                                                                                                     |   |                                    | 33,679  |   |                                   |   | 36,402 |   |
|   Deferred                  financing costs, net                                                                                              |   |                                    | 5,697   |   |                                   |   | 6,354 |   |
|   Assets                  of discontinued operations                                                                                          |   |                                    | 1,124   |   |                                   |   | 1,159 |   |
|   Other                  assets                                                                                                               |   |                                    | 2,073   |   |                                   |   | 3,313 |   |
|        TOTAL                  ASSETS                                                                                 |   | $                                       | 771,637 |   |                                   | $      | 851,620 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
| **LIABILITIES**                                                                                                                                         |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Mortgage                  loans payable                                                                                                     |   | $                                       | 238,079 |   |                                   | $      | 232,768 |   |
|   Repurchase                  agreements                                                                                                      |   |                                    | 83,457  |   |                                   |   | 111,911 |   |
|   Series                  B-1 Cumulative Convertible Redeemable Preferred Shares of                                                           |   |                                    |    |   |                                   |   |   |   |
|                        Beneficial Interest, $25 per share liquidating preference,                                              |   |                                    |    |   |                                   |   |   |   |
|                        3,942,832 and 3,990,000 shares authorized and outstanding                  at                           |   |                                    |    |   |                                   |   |   |   |
|                        September 30, 2007 and December 31, 2006, respectively                                                  |   |                                    | 98,571  |   |                                   |   | 99,750 |   |
|   Loans                  payable                                                                                                              |   |                                    | -       |   |                                   |   | 30,004 |   |
|   Accounts                  payable and accrued liabilities                                                                                   |   |                                    | 7,227   |   |                                   |   | 10,306 |   |
|   Dividends                  payable                                                                                                          |   |                                    | 4,295   |   |                                   |   | 7,844 |   |
|   Below                  market lease intangibles, net                                                                                        |   |                                    | 4,065   |   |                                   |   | 4,572 |   |
|   Liabilities                  of discontinued operations                                                                                     |   |                                    | -       |   |                                   |   | 828 |   |
|        TOTAL                  LIABILITIES                                                                            |   |                                    | 435,694 |   |                                   |   | 497,983 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
| **COMMITMENTS                  AND CONTINGENCIES**                                                                                                      |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
| **MINORITY                  INTEREST**                                                                                                                  |   |                                    | 10,019  |   |                                   |   | 30,051 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
| **SHAREHOLDERS'                  EQUITY**                                                                                                               |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Common                  Shares of Beneficial Interest, $1 par, unlimited                  authorized,                                       |   |                                    |    |   |                                   |   |   |   |
|                        66,072,613 and 65,369,734 outstanding at September 30, 2007                  and                        |   |                                    |    |   |                                   |   |   |   |
|                        December 31, 2006, respectively                                                                         |   |                                    | 66,073  |   |                                   |   | 65,370 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Additional                  paid-in capital                                                                                                 |   |                                    | 357,167 |   |                                   |   | 353,719 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Accumulated                  other comprehensive income (loss)                                                                              |   |                                    | (13,370 | )      |                                   |   | 5,037 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|   Accumulated                  distributions in excess of net income                                                                          |   |                                    | (83,946 | )      |                                   |   | (100,540 | ) |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|                   Total                  Shareholders' Equity |   |                                    | 325,924 |   |                                   |   | 323,586 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|        TOTAL                  LIABILITIES, MINORITY INTEREST AND                                                     |   |                                    |    |   |                                   |   |   |   |
|                 SHAREHOLDERS'                  EQUITY                   |   | $                                       | 771,637 |   |                                   | $      | 851,620 |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
|                                                                                                                                                    |   |                                    |    |   |                                   |   |   |   |
| See                  Notes to Consolidated Financial Statements.                                                                                        |   |

----

| **WINTHROP                  REALTY TRUST**                                                                                  |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
| **FORM                  10-Q - SEPTEMBER 30, 2007**                                                                         |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                  STATEMENTS OF OPERATIONS AND**                                                              |   |
| **COMPREHENSIVE                  INCOME**                                                                                   |   |
| **(Unaudited)**                                                                                                             |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| (In                  thousands, except per share data)                                                                      |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                        |   | **For                  the Three Months Ended** |   |   | **For                  the Nine Months Ended** |   |
|                                                                                                                        |   | **September                  30,** |   |   | **September                  30,** |   |
|                                                                                                                        |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |
| **Revenue**                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Rents                  and reimbursements                                                                                   |   | $ | 9,873 |   |   | $ | 9,727 |   |   | $ | 30,705 |   |   | $ | 27,869 |   |
| Interest                  and dividends                                                                                     |   |   | 2,482 |   |   |   | 3,562 |   |   |   | 10,563 |   |   |   | 10,441 |   |
|                                                                                                                        |   |   | 12,355 |   |   |   | 13,289 |   |   |   | 41,268 |   |   |   | 38,310 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                  operating                                                                                         |   |   | 1,556 |   |   |   | 1,129 |   |   |   | 3,895 |   |   |   | 2,951 |   |
| Real                  estate taxes                                                                                          |   |   | 499 |   |   |   | 329 |   |   |   | 1,366 |   |   |   | 908 |   |
| Depreciation                  and amortization                                                                              |   |   | 2,957 |   |   |   | 3,048 |   |   |   | 8,832 |   |   |   | 8,450 |   |
| Interest                                                                                                                    |   |   | 6,911 |   |   |   | 7,678 |   |   |   | 21,942 |   |   |   | 23,129 |   |
| Provision                  for loss on loan receivable                                                                      |   |   | - |   |   |   | - |   |   |   | 1,266 |   |   |   | - |   |
| General                  and administrative                                                                                 |   |   | 2,028 |   |   |   | 1,795 |   |   |   | 5,859 |   |   |   | 5,015 |   |
| State                  and local taxes                                                                                      |   |   | 14 |   |   |   | 110 |   |   |   | 485 |   |   |   | 330 |   |
|                                                                                                                        |   |   | 13,965 |   |   |   | 14,089 |   |   |   | 43,645 |   |   |   | 40,783 |   |
| **Other                  income and expense**                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assignment                  of exclusivity agreement - net lease assets                                                     |   |   | - |   |   |   | 833 |   |   |   | - |   |   |   | 2,500 |   |
| Earnings                  from preferred equity investments                                                                 |   |   | 3,044 |   |   |   | 1,887 |   |   |   | 10,441 |   |   |   | 4,856 |   |
| Equity                  in earnings of equity investments                                                                   |   |   | 2,440 |   |   |   | 3,705 |   |   |   | 6,203 |   |   |   | 7,756 |   |
| Gain                  on sale of available for sale securities                                                              |   |   | - |   |   |   | 619 |   |   |   | 9,982 |   |   |   | 8,125 |   |
| Loss                  on early extinguishment of debt                                                                       |   |   | - |   |   |   | (521 | ) |   |   | (320 | ) |   |   | (646 | ) |
| Interest                  income                                                                                            |   |   | 565 |   |   |   | 175 |   |   |   | 2,432 |   |   |   | 679 |   |
|                                                                                                                        |   |   | 6,049 |   |   |   | 6,698 |   |   |   | 28,738 |   |   |   | 23,270 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  from continuing operations before**                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **minority                  interest**                                                                                      |   |   | 4,439 |   |   |   | 5,898 |   |   |   | 26,361 |   |   |   | 20,797 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Minority                  interest                                                                                          |   |   | (40 | ) |   |   | 737 |   |   |   | 502 |   |   |   | 2,088 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  from continuing operations**                                                                      |   |   | 4,479 |   |   |   | 5,161 |   |   |   | 25,859 |   |   |   | 18,709 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                  operations**                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from discontinued operations                                                                        |   |   | 891 |   |   |   | 25 |   |   |   | 988 |   |   |   | 81 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  income**                                                                                             |   | $ | 5,370 |   |   | $ | 5,186 |   |   | $ | 26,847 |   |   | $ | 18,790 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Comprehensive                  income**                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                                                                 |   | $ | 5,370 |   |   | $ | 5,186 |   |   | $ | 26,847 |   |   | $ | 18,790 |   |
| Change                  in unrealized gain (loss)  on available for sale                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| securities                  arising during the period                                                                       |   |   | (2,785 | ) |   |   | 1,194 |   |   |   | (2,646 | ) |   |   | 4,953 |   |
| Change                  in unrealized loss on mortgage-backed securities                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| available                  for sale arising during the period                                                               |   |   | 273 |   |   |   | 1,020 |   |   |   | 938 |   |   |   | 648 |   |
| Change                  in unrealized gain on interest rate derivatives                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising                  during the period                                                                                  |   |   | (641 | ) |   |   | (1,188 | ) |   |   | (884 | ) |   |   | (46 | ) |
| Change                  in unrealized gain (loss) from equity investments                                                   |   |   | (6,903 | ) |   |   | - |   |   |   | (5,833 | ) |   |   | - |   |
| Less                  reclassification adjustment from gains                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| included                  in net income                                                                                     |   |   | - |   |   |   | (619 | ) |   |   | (9,982 | ) |   |   | (8,125 | ) |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                  income (loss)                                                                                |   | $ | (4,686 | ) |   | $ | 5,593 |   |   | $ | 8,440 |   |   | $ | 16,220 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Per                  Common Share data - Basic (1)**                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from continuing operations                                                                          |   | $ | 0.07 |   |   | $ | 0.10 |   |   | $ | 0.35 |   |   | $ | 0.37 |   |
| Income                  from discontinued operations                                                                        |   |   | 0.01 |   |   |   | 0.00 |   |   |   | 0.01 |   |   |   | 0.00 |   |
| Net                  income                                                                                                 |   | $ | 0.08 |   |   | $ | 0.10 |   |   | $ | 0.36 |   |   | $ | 0.37 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Per                  Common Share data - Diluted**                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  from continuing operations                                                                          |   | $ | 0.07 |   |   | $ | 0.10 |   |   | $ | 0.35 |   |   | $ | 0.36 |   |
| Income                  from discontinued operations                                                                        |   |   | 0.01 |   |   |   | 0.00 |   |   |   | 0.01 |   |   |   | 0.00 |   |
| Net                  income                                                                                                 |   | $ | 0.08 |   |   | $ | 0.10 |   |   | $ | 0.36 |   |   | $ | 0.36 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                  Weighted-Average Common Shares**                                                                   |   |   | 65,846 |   |   |   | 45,694 |   |   |   | 65,676 |   |   |   | 42,696 |   |
| **Diluted                  Weighted-Average Common Shares**                                                                 |   |   | 65,912 |   |   |   | 45,758 |   |   |   | 65,742 |   |   |   | 65,589 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                  As restated for the three and nine months ended September 30,                  2006. See Note 17. |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  Notes to Consolidated Financial                  Statements.                                           |

----

| **WINTHROP                REALTY TRUST**                                                                                                                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **FORM                10-Q - SEPTEMBER 30, 2007**                                                                                                                                    |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENT OF SHAREHOLDERS' EQUITY**                                                                                                                    |   |
| **(Unaudited)**                                                                                                                                                                      |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (In                thousands)                                                                                                                                                        |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   | AccumulatedOtherComprehensiveIncome |   |   | AccumulatedDistributionsin                Excess ofNet                Income |   |   |   |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | CommonShares                of Beneficial Interest |   |   | AdditionalPaid-InCapital |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   | Shares |   |   | Amount |   |   |   |   |   |   |   |   | Total |   |
| Balance,                December 31, 2006                                                                                                                                            |   |   | 65,370 |   |   | $ | 65,370 |   |   | $ | 353,719 |   |   | $ | 5,037 |   |   | $ | (100,540 | ) |   | $ | 323,586 |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                    Net income                                                                                                                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 26,847 |   |   |   | 26,847 |   |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                paid or accrued on Common Shares of Beneficial Interest ($0.185 per                share)                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,169 | ) |   |   | (12,169 | ) |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change                  in unrealized gain on available for sale securities, net of                  reclassification adjustment for amounts included in net                  income |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,628 | ) |   |   | - |   |   |   | (12,628 | ) |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change                in unrealized loss on mortgage-backed securities                                                                                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 938 |   |   |   | - |   |   |   | 938 |   |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change                in unrealized gain on interest rate derivatives                                                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (884 | ) |   |   | - |   |   |   | (884 | ) |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change                in unrealized gain (loss) from equity investments                                                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,833 | ) |   |   |   |   |   |   | (5,833 | ) |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                issued pursuant to dividend reinvestment plan                                                                                                                   |   |   | 441 |   |   |   | 441 |   |   |   | 2,531 |   |   |   | - |   |   |   | - |   |   |   | 2,972 |   |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion                of Series B-1 preferred shares to common shares                                                                                                            |   |   | 262 |   |   |   | 262 |   |   |   | 917 |   |   |   | - |   |   |   | - |   |   |   | 1,179 |   |
|                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative                effect of a change in accounting principle                                                                                                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,916 |   |   |   | 1,916 |   |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance,                September 30, 2007                                                                                                                                           |   |   | 66,073 |   |   | $ | 66,073 |   |   | $ | 357,167 |   |   | $ | (13,370 | ) |   | $  | (83,946 | ) |   | $ | 325,924 |   |

----

| **WINTHROP                REALTY TRUST**                                                                                  |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|
| **FORM                10-Q - SEPTEMBER 30, 2007**                                                                         |   |
|                                                                                                                      |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                                                  |   |
| **(Unaudited)**                                                                                                           |   |
| (In                thousands)                                                                                             |   |
|                                                                                                                      |   |   |   |   |   |   |
|                                                                                                                      |   | **For                the Nine Months Ended** |   |
|                                                                                                                      |   | **September                30** |   |
|                                                                                                                      |   | **2007** |   |   | **2006** |   |
| **Cash                flows from operating activities**                                                                   |   |   |   |   |   |   |
| Net                income                                                                                                 |   | $ | 26,847 |   |   | $ | 18,790 |   |
| Adjustments                to reconcile net income to net cash provided by                                                |   |   |   |   |   |   |   |   |
|    operating                activities                                                                     |   |   |   |   |   |   |   |   |
|   Depreciation                and amortization (including amortization of deferred                              |   |   |   |   |   |   |   |   |
|        financing                costs)                                                 |   |   | 6,046 |   |   |   | 5,707 |   |
|   Amortization                of lease intangibles                                                              |   |   | 4,202 |   |   |   | 4,172 |   |
|   Straight-lining                of rental income                                                               |   |   | (744 | ) |   |   | 150 |   |
|   Earnings                of preferred equity investments less than (in excess of)                distributions |   |   | (8 | ) |   |   | 12 |   |
|   Earnings                in excess of distributions of equity investments                                      |   |   | (6,203 | ) |   |   | (3,076 | ) |
|   Restricted                cash held in escrows                                                                |   |   | 213 |   |   |   | (31 | ) |
|   Minority                interest                                                                              |   |   | 502 |   |   |   | 2,088 |   |
|   Gain                on sale of available for sale securities                                                  |   |   | (9,982 | ) |   |   | (8,125 | ) |
|   Loss                from early extinguishment of debt                                                         |   |   | 320 |   |   |   | 126 |   |
|   Provision                for loss on loan receivable                                                          |   |   | 1,266 |   |   |   | - |   |
|   Decrease                in deferred income                                                                    |   |   | - |   |   |   | (2,500 | ) |
|   Bad                debt expense (recovery)                                                                    |   |   | 71 |   |   |   | (20 | ) |
|   Interest                receivable on loans                                                                   |   |   | 198 |   |   |   | 357 |   |
|   Net                changes in other operating assets and liabilities                                          |   |   | 1,049 |   |   |   | 3,395 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|         Net                cash provided by operating activities                  |   |   | 23,777 |   |   |   | 21,045 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
| **Cash                flows from investing activities**                                                                   |   |   |   |   |   |   |   |   |
| Investments                in real estate                                                                                 |   |   | (8,884 | ) |   |   | (37,194 | ) |
| Proceeds                from sale of limited liability partnership interest                                               |   |   | - |   |   |   | 580 |   |
| Proceeds                from repayments of mortgage-backed securities available for                sale                   |   |   | 30,094 |   |   |   | 26,201 |   |
| Investment                in equity investments                                                                           |   |   | (78,288 | ) |   |   | (62,459 | ) |
| Investment                in preferred equity investments                                                                 |   |   | (17,669 | ) |   |   | (1,484 | ) |
| Return                of equity on equity investments                                                                     |   |   | 10,000 |   |   |   | - |   |
| Proceeds                from limited liability company                                                                    |   |   | - |   |   |   | 1,050 |   |
| Proceeds                from preferred equity investments                                                                 |   |   | 16,162 |   |   |   | 3,264 |   |
| Purchase                of available for sale securities                                                                  |   |   | (3,171 | ) |   |   | (2,463 | ) |
| Proceeds                from sale of available for sale securities                                                        |   |   | 21,169 |   |   |   | 28,572 |   |
| Increase                in restricted cash held in escrows                                                                |   |   | (1,408 | ) |   |   | (2,839 | ) |
| Issuance                and acquisition of loans receivable                                                               |   |   | (2,986 | ) |   |   | (20,519 | ) |
| Collection                of loans receivable                                                                             |   |   | 64,315 |   |   |   | 8,027 |   |
|                                                                                                                      |   |   |   |   |   |   |   |   |
|         Net                cash provided by (used in) investing activities        |   |   | 29,334 |   |   |   | (59,264 | ) |

----

| **WINTHROP                REALTY TRUST**                                                                                    |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|
| **FORM                10-Q - SEPTEMBER 30, 2007**                                                                           |   |
|                                                                                                                        |   |   |   |   |   |   |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS**                                                                    |   |
| **(Unaudited)**                                                                                                             |   |
| (In                thousands)                                                                                               |   |
| (Continued                from previous page)                                                                               |   |
|                                                                                                                        |   | **For                the Nine Months Ended** |   |
|                                                                                                                        |   | **September                30,** |   |
|                                                                                                                        |   | **2007** |   |   | **2006** |   |
| **Cash                flows from financing activities**                                                                     |   |   |   |   |   |   |
| Repayment                of borrowings under repurchase agreements                                                          |   | $ | (28,454 | ) |   | $ | (25,155 | ) |
| Proceeds                from mortgage loans payable                                                                         |   |   | 51,646 |   |   |   | 88,745 |   |
| Restricted                cash held in escrows                                                                              |   |   | 110 |   |   |   | - |   |
| Principal                payments of mortgage loans payable                                                                 |   |   | (46,335 | ) |   |   | (30,625 | ) |
| Payments                of loans payable                                                                                    |   |   | (30,004 | ) |   |   | (16 | ) |
| Proceeds                from revolving line of credit                                                                       |   |   | - |   |   |   | 67,000 |   |
| Payment                of revolving line of credit                                                                          |   |   | - |   |   |   | (76,000 | ) |
| Deferred                financing costs                                                                                     |   |   | (887 | ) |   |   | (1,668 | ) |
| Contribution                by minority interests                                                                           |   |   | 787 |   |   |   | 2,607 |   |
| Distribution                to minority interests                                                                           |   |   | (21,321 | ) |   |   | (2,573 | ) |
| Issuance                of Common Shares                                                                                    |   |   | - |   |   |   | 27,122 |   |
| Dividends                paid on Series A Preferred Shares                                                                  |   |   | - |   |   |   | (516 | ) |
| Dividends                paid on Common Shares                                                                              |   |   | (15,718 | ) |   |   | (9,397 | ) |
| Dividend                reinvestment plan proceeds                                                                          |   |   | 2,972 |   |   |   | - |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
|         Net                cash (used in) provided by financing activities          |   |   | (87,204 | ) |   |   | 39,524 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| Net                (decrease)increase in cash and cash equivalents                                                          |   |   | (34,093 | ) |   |   | 1,305 |   |
| Cash                and cash equivalents at beginning of period                                                             |   |   | 89,463 |   |   |   | 19,018 |   |
| Cash                and cash equivalents at end of period                                                                   |   | $ | 55,370 |   |   | $ | 20,323 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| **    Supplemental                Disclosure of Cash Flow Information**                                 |   |   |   |   |   |   |   |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
|     Interest                paid                                                                        |   | $ | 21,259 |   |   | $ | 21,431 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| Taxes                paid                                                                                                   |   | $ | 472 |   |   | $ | 599 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
|                    **Supplemental Disclosure of Non-Cash Investing and Financing                Activities** |   |   |   |   |   |   |   |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| Dividends                accrued on Common Shares                                                                           |   | $ | 4,295 |   |   | $ | 2,742 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| Capital                expenditures accrued                                                                                 |   | $ | 194 |   |   | $ | - |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| Conversion                of Series B Preferred Shares                                                                      |   | $ | 1,179 |   |   | $ | 250 |   |
|                                                                                                                        |   |   |   |   |   |   |   |   |
| See                Notes to Consolidated Financial Statements.                                                              |   |

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

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

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

*Earnings      Per Share *
* *

|                                                                               |   | Three                Months EndedSeptember                30, |   |   | Nine                Months EndedSeptember                30, |   |
|------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                                               |   | 2007                                                          |   |   | 2006                                                         |   |   | 2007 |   |   | 2006 |   |
| Basic                                                                              |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |
| Income                from continuing operations                                   |   | $                                                             | 4,479  |   |                                                         | $      | 5,161 |   |   | $ | 25,859 |   |   | $ | 18,709 |   |
| Allocation                of undistributed earnings to Series B-1 Preferred Shares |   |                                                          | (136   | )      |                                                         |   | (603 | ) |   |   | (3,132 | ) |   |   | (3,036 | ) |
| Income                from continuing operations                                   |   |                                                          | 4,343  |   |                                                         |   | 4,558 |   |   |   | 22,727 |   |   |   | 15,673 |   |
|                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                                 |   |                                                          | 891    |   |                                                         |   | 25 |   |   |   | 988 |   |   |   | 81 |   |
|                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net                income applicable to Common Shares                              |   | $                                                             | 5,234  |   |                                                         | $      | 4,583 |   |   | $ | 23,715 |   |   | $ | 15,754 |   |
|                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                |   |                                                          | 65,846 |   |                                                         |   | 45,694 |   |   |   | 65,676 |   |   |   | 42,696 |   |
|                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                   |   | $                                                             | 0.07   |   |                                                         | $      | 0.10 |   |   | $ | 0.35 |   |   | $ | 0.37 |   |
| Income                from discontinued operations                                 |   |                                                          | 0.01   |   |                                                         |   | - |   |   |   | 0.01 |   |   |   | - |   |
| Net                income per Common Share – Basic                           |   | $                                                             | 0.08   |   |                                                         | $      | 0.10 |   |   | $ | 0.36 |   |   | $ | 0.37 |   |

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

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

|  Earnings                Per Share (Continued)                                                                |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                               |   | Three                Months EndedSeptember                30, |   |   | Nine                Months EndedSeptember                30, |   |
|                                                                                                               |   | 2007                                                          |   |   | 2006                                                         |   |   | 2007   |   |   | 2006   |   |
| Diluted                                                                                                            |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                   |   | $                                                             | 4,479  |   |                                                         | $      | 5,161  |   |   | $      | 25,859 |   |   | $ | 18,709 |   |
| Allocation                of undistributed earnings to   Series                B-1 Preferred Shares |   |                                                          | (136   | )      |                                                         |   | (603   | )      |   |   | (3,132 | )      |   |   | - |   |
| Interest                expense – Series B-1 Preferred   Shares                               |   |                                                          | -      |   |                                                         |   | -      |   |   |   | -      |   |   |   | 4,864 |   |
| Income                from continuing operations                                                                   |   |                                                          | 4,343  |   |                                                         |   | 4,558  |   |   |   | 22,727 |   |   |   | 23,573 |   |
| Income                from discontinued operations                                                                 |   |                                                          | 891    |   |                                                         |   | 25     |   |   |   | 988    |   |   |   | 81 |   |
| Net                income applicable to Common Shares                                                              |   | $                                                             | 5,234  |   |                                                         | $      | 4,583  |   |   | $      | 23,715 |   |   | $ | 23,654 |   |
|                                                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                                |   |                                                          | 65,846 |   |                                                         |   | 45,694 |   |   |   | 65,676 |   |   |   | 42,696 |   |
| Convertible                Preferred Shares (1)                                                                    |   |                                                          | -      |   |                                                         |   | -      |   |   |   | -      |   |   |   | 22,831 |   |
| Stock                options                                                                                       |   |                                                          | 66     |   |                                                         |   | 64     |   |   |   | 66     |   |   |   | 62 |   |
| Diluted                weighted-average Common Shares                                                              |   |                                                          | 65,912 |   |                                                         |   | 45,758 |   |   |   | 65,742 |   |   |   | 65,589 |   |
|                                                                                                               |   |                                                          |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                   |   | $                                                             | 0.07   |   |                                                         | $      | 0.10   |   |   | $      | 0.35   |   |   | $ | 0.36 |   |
| Income                from discontinued operations                                                                 |   |                                                          | 0.01   |   |                                                         |   | -      |   |   |   | 0.01   |   |   |   | - |   |
| Net                income per Common Share – Diluted                                                         |   | $                                                             | 0.08   |   |                                                         | $      | 0.10   |   |   | $      | 0.36   |   |   | $ | 0.36 |   |

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

*Consolidation of Variable Interest Entities*

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

*Accounting for Uncertainty in      Income Taxes—an interpretation of FASB Statement No. 109*
*Accounting for Income Taxes.*

*Fair Value      Measurements*

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

*Investment Companies *

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

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

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

| **4.** | **Mortgage-Backed                Securities Pledged Under Repurchase Agreements                (Continued)** |
|--------|--------------------------------------------------------------------------------------------------------------|

|                                               |   | September                30, 2007 |   |   | December                31, 2006 |   |
|----------------------------------------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|
| Cost                                               |   | $                                 | 85,702 |   |                             | $      | 115,726 |   |
| Unrealized                loss                     |   |                              | (49    | )      |                             |   | (987 | ) |
| Interest                payment receivable         |   |                              | 393    |   |                             |   | 463 |   |
| Unamortized                premium                 |   |                              | 435    |   |                             |   | 608 |   |
|                                               |   |                              |   |   |                             |   |   |   |
| Carrying                value/estimated fair value |   | $                                 | 86,481 |   |                             | $      | 115,810 |   |

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

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

|                                       |   |                                 |   |                           |   |   |                      |                         |   | Carrying                Amount (1) |   |
|--------------------------------------------|--------|--------------------------------------|--------|--------------------------------|--------|--------|---------------------------|------------------------------|--------|------------------------------------|--------|
| Property/Collateral                        |   | Location                             |   | Interest                Rate   |   |   | Maturity                  |                         |   | September                30, 2007  |   |   | December 31,                2006 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   |   |   |   |
| Toy                Building (2)            |   | New                York, NY          |   | LIBOR                plus 5.6% |   |   | April                2008 |                         |   | $                                  | -      |   |   | $ | 59,816 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   |   |   |   |   |   |
| River                City - Commercial (3) |   | Chicago,                IL           |   |                           | 9.75%  |   |                      | February                2006 |   |                               |   | 12,326 |   |   |   | 12,082 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   |   |   |   |   |   |   |
| River                City – Land (4) |   | Chicago,                IL           |   |                           | 10%    |   |                      | December                2007 |   |                               |   | 46 |   |   |   | 4,117 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   |   |   |   |   |   |   |
| Various                (5) (6)             |   | Chicago,                IL           |   |                           | 8.5%   |   |                      | (6)                          |   |                               |   | 6,250 |   |   |   | 4,148 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   |   |   |   |   |   |   |   |
| Vision                Term Loan            |   | Partnership                Interests |   |                           | 15%    |   |                      | December                2011 |   |                               |   | - |   |   |   | 1,252 |   |
|                                       |   |                                 |   |                           |   |   |                      |                         |   |                               |   | $ | 18,622 |   |   | $ | 81,415 |   |

|  | (1) | The                carrying amount includes accrued interest of $621,000 and $834,000                at                September 30, 2007 and December 31, 2006,                respectively. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|  | (3) | The                River City Commercial Loan was foreclosed upon on July 24, 2007 and                following an appeal, the foreclosure was confirmed and finalized                on                October 2, 2007. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (4) | The                River City-Land loan was paid in October                2007. |
|--|-----|----------------------------------------------------------------------------------|

|  | (5) | Tenant                improvement and capital expenditure loans with respect to certain                of the                properties in the Marc Realty portfolio which mature from July 2012                to                November 2013. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (6) | Collateralized                by a subordinate mortgage or the ownership interests in the property                owner. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------|

|                                            |   | 2007   |    |
|-------------------------------------------------|--------|--------|---------|
|                                            |   |   |    |   |
| Balance                at January 1             |   | $      | 81,415  |   |
| Purchases                and advances made      |   |   | 2,986   |   |
| Interest                (received) accrued, net |   |   | (198    | ) |
| Repayments                                      |   |   | (64,315 | ) |
| Reserve                                         |   |   | (1,266  | ) |
|                                            |   |   |    |   |
| Balance                at September 30          |   | $      | 18,622  |   |

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

**6.**
**Available      for Sale Securities**

|    Name                                 |   |   Date                Acquired |   | Cost                atSeptember                30, 2007 |   |   | UnrealizedGain                (Loss) atSeptember                30, 2007 |   |   | Balance                atSeptember                30, 2007 |   |
|--------------------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------|--------|--------|--------------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|
|                                                   |   |                                     |   |                                                    |   |   |                                                                     |   |   |                                                       |   |
| America                First Apartment Investors, Inc. |   | 11/30/05                                 |   | $                                                       | 14     |   |                                                                     | $      | 11     |                                                       |   | $ | 25 |   |
|                                                   |   |                                     |   |                                                    |   |   |                                                                     |   |   |                                                       |   |   |   |   |
| Lexington                Realty Trust                  |   | 12/31/06                                 |   |                                                    | 77,801 |   |                                                                     |   | (7,989 | )                                                          |   |   | 69,812 |   |
|                                                   |   |                                     |   |                                                    |   |   |                                                                     |   |   |                                                       |   |   |   |   |
| Other                real estate securities            |   | Various                                  |   |                                                    | 4,292  |   |                                                                     |   | (295   | )                                                          |   |   | 3,997 |   |
|                                                   |   |                                     |   |                                                    |   |   |                                                                     |   |   |                                                       |   |   |   |   |
|                                                   |   |                                     |   | $                                                       | 82,107 |   |                                                                     | $      | (8,273 | )                                                          |   | $ | 73,834 |   |

| **7.** | **Preferred                Equity Investments** |
|--------|-------------------------------------------------|

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

| **7.** | **Preferred                Equity Investments                (Continued)** |
|--------|----------------------------------------------------------------------------|

|                                                                                                                  |   | As                of              |    |   | As                of             |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|----------------------------------|--------|
|                                                                                                                  |   | September                30, 2007 |    |   | December                31, 2006 |   |
| Condensed                Balance Sheet                                                                                |   |                              |    |   |                             |   |
| Investment                in real estate, net                                                                         |   | $                                 | 161,944 |   |                             | $      | 147,166 |   |
| Prepaid                expenses and deposits in escrow                                                                |   |                              | 8,377   |   |                             |   | 15,569 |   |
| Cash                and cash equivalents                                                                              |   |                              | 2,473   |   |                             |   | 2,451 |   |
| Receivables                and other assets                                                                           |   |                              | 18,491  |   |                             |   | 27,568 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| Total                Assets                                                                                           |   | $                                 | 191,285 |   |                             | $      | 192,754 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| Nonrecourse                mortgage debt                                                                              |   | $                                 | 248,561 |   |                             | $      | 259,547 |   |
| Other                liabilities                                                                                      |   |                              | 22,587  |   |                             |   | 23,039 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| Total                Liabilities                                                                                      |   |                              | 271,148 |   |                             |   | 282,586 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| Members'                Deficit                                                                                       |   |                              | (79,863 | )      |                             |   | (89,832 | ) |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| Total                Liabilities and Members' Deficit                                                                 |   | $                                 | 191,285 |   |                             | $      | 192,754 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| On                the Trust's Consolidated Balance Sheet:                                                             |   |                              |    |   |                             |   |   |   |
| Preferred                Equity Investment (1)                                                                        |   | $                                 | 74,618  |   |                             | $      | 73,127 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |
| (1) Includes                capitalized acquisition cost of $870 and $1,073 at September 30,                2007 |   |
|                      and December 31, 2006, respectively.                                    |   |                              |    |   |                             |   |   |   |

|                                                               |   | For                the Three Months Ended |   |   | For                the Nine Months Ended |   |
|--------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|------------------------------------------|--------|
|                                                               |   | September                30,              |   |   | September                30,             |   |   | September                30, |   |   | September                30, |   |
|                                                               |   | 2007                                      |   |   | 2006                                     |   |   | 2007 |   |   | 2006 |   |
| Condensed                Statements of Operations                  |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Revenue                                                            |   | $                                         | 17,223 |   |                                     | $      | 17,508 |   |   | $ | 48,218 |   |   | $ | 51,615 |   |
| Operating                expenses                                  |   |                                      | (7,526 | )      |                                     |   | (7,271 | ) |   |   | (24,910 | ) |   |   | (21,088 | ) |
| Interest                expense                                    |   |                                      | (4,863 | )      |                                     |   | (4,815 | ) |   |   | (12,923 | ) |   |   | (13,667 | ) |
| Real                estate taxes                                   |   |                                      | (3,013 | )      |                                     |   | (3,117 | ) |   |   | (8,780 | ) |   |   | (8,742 | ) |
| Depreciation                and amortization                       |   |                                      | (3,321 | )      |                                     |   | (2,598 | ) |   |   | (9,793 | ) |   |   | (7,470 | ) |
| Other                expenses                                      |   |                                      | (760   | )      |                                     |   | (1,237 | ) |   |   | (2,112 | ) |   |   | (4,317 | ) |
| Gain                on sale of property                            |   |                                      | 11,623 |   |                                     |   | - |   |   |   | 38,251 |   |   |   | - |   |
|                                                               |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                   |   | $                                         | 9,363  |   |                                     | $      | (1,530 | ) |   | $ | 27,951 |   |   | $ | (3,669 | ) |
|                                                               |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| On                the Trust's Consolidated                         |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Statement                  of Operations and Comprehensive Income: |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  from preferred equity investment         |   | $                                         | 3,044  |   |                                     | $      | 1,887 |   |   | $ | 10,441 |   |   | $ | 4,856 |   |

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

|                                                                  |   | Concord                Debt Holdings, LLC |    |   | Sealy                Northwest Atlanta, LP |   |   | Sealy                Airpark Nashville L.P. |   |   | Lex-WinAcquisition                LLC |   |   | Total  |   |
|-----------------------------------------------------------------------|--------|-------------------------------------------|---------|--------|--------------------------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|--------|
| Equity                investments at December                31, 2006 |   |                                      | 92,682  |   |                                       |   | 5,419  |                                        |   |   | -                                     |   |   |   | -      |   |   |   | 98,101 |   |
| Investments                                                           |   |                                      | 56,158  |   |                                       |   | -      |                                        |   |   | 9,308                                 |   |   |   | 12,822 |   |   |   | 78,288 |   |
| Return                of capital on equity                investments |   |                                      | (10,000 | )      |                                       |   | -      |                                        |   |   | -                                     |   |   |   | -      |   |   |   | (10,000 | ) |
| Equity                in other comprehensive loss                     |   |                                      | (5,833  | )      |                                       |   | -      |                                        |   |   | -                                     |   |   |   | -      |   |   |   | (5,833 | ) |
| Equity                in earnings (loss)                              |   |                                      | 7,534   |   |                                       |   | (502   | )                                           |   |   | (790                                  | )      |   |   | (39    | ) |   |   | 6,203 |   |
|                                                                  |   |                                      |    |   |                                       |   |   |                                        |   |   |                                  |   |   |   |   |   |   |   |   |   |
| Equity                investments, September                30, 2007  |   | $                                         | 140,541 |   |                                       | $      | 4,917  |                                        |   | $      | 8,518                                 |   |   | $      | 12,783 |   |   | $ | 166,759 |   |

*Concord      Debt Holdings, LLC*

|                                                        |   | As                of              |      |   | As                of             |   |
|-------------------------------------------------------------|--------|-----------------------------------|-----------|--------|----------------------------------|--------|
|                                                        |   | September                30, 2007 |      |   | December                31, 2006 |   |
| Condensed                Balance Sheets                     |   |                              |      |   |                             |   |
| Cash                and restricted cash                     |   | $                                 | 15,390    |   |                             | $      | 148,261 |   |
| Real                estate debt investments                 |   |                              | 863,765   |   |                             |   | 333,816 |   |
| Available                for sale securities, at fair value |   |                              | 188,905   |   |                             |   | 117,054 |   |
| Other                assets                                 |   |                              | 13,206    |   |                             |   | 10,744 |   |
|                                                        |   |                              |      |   |                             |   |   |   |
| Total                Assets                                 |   | $                                 | 1,081,266 |   |                             | $      | 609,875 |   |
|                                                        |   |                              |      |   |                             |   |   |   |
| Repurchase                agreements                        |   |                              | 418,861   |   |                             |   | 43,893 |   |
| Secured                debt obligations                     |   |                              | 376,650   |   |                             |   | 376,650 |   |
| Accounts                payable and other liabilities       |   |                              | 4,418     |   |                             |   | 2,347 |   |
| Other                comprehensive income (loss)            |   |                              | (11,666   | )      |                             |   | 1,152 |   |
| Members'                equity                              |   |                              | 293,003   |   |                             |   | 185,833 |   |
|                                                        |   |                              |      |   |                             |   |   |   |
| Total                liabilities and members' equity        |   | $                                 | 1,081,266 |   |                             | $      | 609,875 |   |
|                                                        |   |                              |      |   |                             |   |   |   |
| On                the Trust's Consolidated Balance Sheets:  |   |                              |      |   |                             |   |   |   |
| Equity                Investment in joint venture           |   | $                                 | 140,541   |   |                             | $      | 92,682 |   |

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

| **8.** | **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, |   |
|                                                   |   | 2007                                      |    |   | 2006                                     |   |   | 2007 |   |   | 2006 (1) |   |
| Condensed                Statements of Operations      |   |                                      |    |   |                                     |   |   |   |   |   |   |   |
| Interest                and other income               |   | $                                         | 19,937  |   |                                     | $      | 4,629 |   |   | $ | 48,141 |   |   | $ | 6,278 |   |
| Loss                from change in fair market value   |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| of                interest rate derivatives            |   |                                      | -       |   |                                     |   | (3,759 | ) |   |   | - |   |   |   | (2,967 | ) |
| Interest                expense                        |   |                                      | (12,901 | )      |                                     |   | (2,067 | ) |   |   | (29,510 | ) |   |   | (2,691 | ) |
| General                and administrative              |   |                                      | (1,134  | )      |                                     |   | (344 | ) |   |   | (3,564 | ) |   |   | (662 | ) |
|                                                   |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                       |   | $                                         | 5,902   |   |                                     | $      | (1,541 | ) |   | $ | 15,067 |   |   | $ | (42 | ) |
|                                                   |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| On                the Trust's Consolidated             |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Statement                of Operations and             |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income:                   |   |                                      |    |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in earnings of equity investment |   | $                                         | 2,952   |   |                                     | $      | (770 | ) |   | $ | 7,534 |   |   | $ | (21 | ) |

|                                                                 |   |       |    |      | September                30, 2007 |   |    | December                31, 2006        |   |
|----------------------------------------------------------------------|--------|------------|---------|-----------|-----------------------------------|--------|---------|-----------------------------------------|--------|
|                                                                 |   | LineAmount |    |      | Debt                CarryingValue |   |    | CollateralCarrying                Value |   |   | Debt                CarryingValue |   |   | Collateral                CarryingValue |   |
|                                                                 |   |       |    |      |                              |   |    |                                    |   |   |
| Repurchase                agreement with Credit Suisse,              |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |
| Inc.                as counter-party, expiration March 2009,         |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on      |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |
| one                month LIBOR plus 95 to 135 basis points,          |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted              average of 6.28% and 6.70%, respectively       |   | $          | 350,000 |      |                              | $      | 320,835 |                                    |   | $ | 422,939 |   |   | $ | 30,293 |   |   | $ | 47,250 |   |
|                                                                 |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with Bear Stearns & Co.,     |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Inc.                as counter-party, expiration November 30, 2008,  |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on      |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| one                month LIBOR plus 35 to 115 basis points,          |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| weighted              average of 5.95% and 5.67%, respectively       |   |       | 150,000 |      |                              |   | 56,156  |                                    |   |   | 78,601 |   |   |   | 13,600 |   |   |   | 17,000 |   |
|                                                                 |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with RBS Greenwich Capital, Inc. |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| as                counter-party, expiration November 15, 2007,       |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on      |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| one                month LIBOR plus 100 basis points,                |   |       |    |      |                              |   |         |                                    |   |   |  |   |   |   |   |   |   |   |  |   |
| weighted              average of 5.14%                               |   |       | 41,870  | (1)  |                              |   | 41,870  |                                    |   |   | 55,827 |   |   |   | - |   |   |   | - |   |
|                                                                 |   |       |    |      |                              |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                 |   | $          | 541,870 |      |                              | $      | 418,861 |                                    |   | $ | 557,367 |   |   | $ | 43,893 |   |   | $ | 64,250 |   |

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

*Concord      Debt Holdings, LLC (Continued)*

*Collateralized      Debt Obligations*

|                                                                                                                                                                                                                                                                                                                                                                | September                30, 2007 |          |       | December                31, 2006 |          |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------|------------|----------------------------------|---------------|
|                                                                                                                                                                                                                                                                                                                                                           | DebtCarryingValue                 |          |       | CollateralCarryingValue          |          |   | DebtCarryingValue |   |   | CollateralCarryingValue | ** ** |
| ** **                                                                                                                                                                                                                                                                                                                                                     | ** **                        | ** **    | ** ** | ** **                       | ** **    | ** ** |   |
| CDO                I – Issued seven investment grade                tranches December 21, 2006. Reinvestment                period through December                21, 2011.  Interest rate variable                based on one-month LIBOR; the                weighted average note rate was 5.636%                and 5.855%, respectively |  $                           |  376,650 |       |  $                          |  454,352 |  (1) |  $ |  376,650 |   |  $ |  361,635 | (1) |

**9.**
**Repurchase      Agreements**

|                                                               | September                30, 2007 |   |   | December                31, 2006 |   |
|--------------------------------------------------------------------|-----------------------------------|--------|--------|----------------------------------|--------|
|                                                               | DebtCarryingValue                 |   |   | CollateralCarryingValue          |   |   | DebtCarryingValue |   |   | CollateralCarryingValue |   |
|                                                               |                              |   |   |                             |   |   |   |
| Repurchase                agreement with Bear Stearns & Co.,   |                              |   |   |                             |   |   |   |   |   |   |   |   |
| Inc.                as counter-party, expiration October 25, 2007, |                              |   |   |                             |   |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on    |                              |   |   |                             |   |   |   |   |   |   |   |   |
| one-month                LIBOR minus 3 basis points                |                              | $      | 54,021 |                             |   | $ | 55,884 |   |   | $ | 72,545 |   |   | $ | 75,029 |   |
|                                                               |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with Bear Stearns & Co.,   |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Inc.                as counter-party, expiration October 25, 2007, |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on    |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| one-month                LIBOR minus 3 basis points                |                              |   | 10,016 |                             |   |   | 10,383 |   |   |   | 16,296 |   |   |   | 16,893 |   |
|                                                               |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Repurchase                agreement with Bear Stearns & Co.,   |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Inc.                as counter-party, expiration October 25, 2007, |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| renewable                monthly, interest is variable based on    |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
| one-month                LIBOR minus 3 basis points                |                              |   | 19,420 |                             |   |   | 20,214 |   |   |   | 23,070 |   |   |   | 23,888 |   |
|                                                               |                              |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |                              | $      | 83,457 |                             |   | $ | 86,481 |   |   | $ | 111,911 |   |   | $ | 115,810 |   |

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

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

|                                        | Maturity                     |   | Spread                Over LIBOR/Prime |   |   | Interest                Rate as of September 30, 2007 |   |   | Balance                as of September 30, 2007 |   |    | Balance                as of December 31, 2006 |   |
|---------------------------------------------|------------------------------|--------|----------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|-------------------------------------------------|--------|---------|------------------------------------------------|--------|
| Mortgage                Loans Payable       |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |
| Fixed                Interest Rate:         |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |
| Amherst,                NY                  | October                2013  |   |                                   | --     |   |                                                  |   | 5.65%  |                                            |   |    | 17,365                                         |   |   |   | 17,622 |   |
| Indianapolis,                IN             | April                2015    |   |                                   | --     |   |                                                  |   | 5.82%  |                                            |   |    | 4,463                                          |   |   |   | 4,508 |   |
| Houston,                TX                  | April                2016    |   |                                   | --     |   |                                                  |   | 6.66%  |                                            |   |    | 70,446                                         |   |   |   | 72,270 |   |
| Andover,                MA                  | February                2011 |   |                                   | --     |   |                                                  |   | 6.60%  |                                            |   |    | 6,531                                          |   |   |   | 6,610 |   |
| S.                Burlington, VT            | February                2011 |   |                                   | --     |   |                                                  |   | 6.60%  |                                            |   |    | 2,799                                          |   |   |   | 2,833 |   |
| Chicago,                IL                  | March                2016    |   |                                   | --     |   |                                                  |   | 5.75%  |                                            |   |    | 21,600                                         |   |   |   | 21,600 |   |
| Lisle,                IL                    | June                2016     |   |                                   | --     |   |                                                  |   | 6.26%  |                                            |   |    | 24,600                                         |   |   |   | 24,600 |   |
| Lisle,                IL                    | March                2017    |   |                                   | --     |   |                                                  |   | 5.55%  |                                            |   |    | 5,600                                          |   |   |   | -- |   |
| Kansas                City, KS              | June                2012     |   |                                   | --     |   |                                                  |   | 7.04%  |                                            |   |    | 5,846                                          |   |   |   | -- |   |
| Orlando,                FL                  | July                2017     |   |                                   | --     |   |                                                  |   | 6.40%  |                                            |   |    | 40,140                                         |   |   |   | -- |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Variable                Interest Rate:      |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Various                                     | June                2009     |   | LIBOR                + 1.75%           |   |   |                                                  | (1)    |   |                                            |   | 29,189  |                                           |   |   | 69,549 |   |
| Chicago,                IL                  | March                2008    |   | Prime                + 0.50%           |   |   |                                                  | 8.75%  |   |                                            |   | 9,500   |                                           |   |   | 9,500 |   |
| Chicago,                IL                  | March                2008    |   | Prime                + 0.50%           |   |   |                                                  | (2)    |   |                                            |   | -       |                                           |   |   | 3,676 |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Total                Mortgage Loans Payable |                         |   |                                   |   |   |                                                  |   |   |                                            | $      | 238,079 |                                           |   | $ | 232,768 |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Loans                Payable:               |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Collateralized                by venture    |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| participation                in the Toy     |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
| Building                Loan                | April                2008    |   | LIBOR                + 3.00%           |   |   |                                                  | (3)    |   |                                            | $      | -       |                                           |   | $ | 30,000 |   |
| Miscellaneous                               | February                2007 |   |                                   | --     |   |                                                  |   | 7.50%  |                                            |   |    | -                                              |   |   |   | 4 |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   |    |                                           |   |   |   |   |   |
|                                        |                         |   |                                   |   |   |                                                  |   |   |                                            |   | $       | -                                              |   |   | $ | 30,004 |   |

|  | (1) | As                a result of the Trust entering into an interest rate swap agreement                in the                notional amount of $26,000,000, the Trust has effectively converted                the                floating interest rate to a fixed rate of 5.80% through December,                2009.  The remaining principal amount of $3,189,000 remains                variable at LIBOR plus 1.75% (which equated to 7.125% at September                30,                2007). |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Loan                was paid on July 9, 2007. |
|--|-----|-----------------------------------------------|

|  | (3) | Loan                was paid on May 16, 2007. |
|--|-----|-----------------------------------------------|

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

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

|    Maturity   |   | Swap                Rate |   |   | Notional                Amount of Hedge |   |   | Cost                of Hedge |   |   | Estimated                Fair Value/Carrying                Value |   |   | Unrealized                Gain on Settled Swap |   |   | Gross                Unrealized Loss For the Three Months EndedSeptember                30, 2007 |   |   | Gross                UnrealizedLoss                For the Nine Months EndedSeptember                30, 2007 |   |
|------------------------------|--------|--------------------------|--------|--------|-----------------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------|--------|
| December                2009 |   |                     | 4.05   | %      |                                    | $      | 26,000 | (1)                          |   | $      | -                                                                 |   |   | $                                              | 233    |   |                                                                                             | $      | 327    |                                                                                                          |   | $ | (500 | ) |   | $ | (435 | ) |
|                         |   |                     |   |   |                                    |   |   |                         |   |   |                                                              |   |   |                                           |   |   |                                                                                             |   |   |                                                                                                          |   |   |   |   |   |   |   |   |
| January                2008  |   |                     | 4.055  | %      |                                    | $      | 54,021 | (2)                          |   | $      | -                                                                 |   |   | $                                              | 225    |   |                                                                                             | $      | -      |                                                                                                          |   |   | (141 | ) |   |   | (449 | ) |
|                         |   |                     |   |   |                                    |   |   |                         |   |   |                                                              |   |   |                                           |   |   |                                                                                             |   |   |                                                                                                          |   | $ | (641 | ) |   | $ | (884 | ) |

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

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

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30,            2007**

**NOTES            TO UNAUDITED CONSOLIDATED FINANCIAL            STATEMENTS**

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

|                                               |   | For                the Three Months Ended September 30,  |   |   | For                the Nine Months Ended September 30, |   |
|----------------------------------------------------|--------|---------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|
|                                          |   | 2007                                                          |   |   | 2006                                                   |   |   | 2007 |   |   | 2006 |   |
| Total                revenue                       |   | $                                                             | 899    |   |                                                   | $      | 44 |   |   | $ | 1,013 |   |   | $ | 159 |   |
| Total                expenses                      |   |                                                          | (8     | )      |                                                   |   | (19 | ) |   |   | (25 | ) |   |   | (78 | ) |
| Income                from discontinued operations |   | $                                                             | 891    |   |                                                   | $      | 25 |   |   | $ | 988 |   |   | $ | 81 |   |

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

|                                       |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|---------------------------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|
|                             |   | 2007                              |   |   | 2006                             |   |   | 2007 |   |   | 2006 |   |
| Asset                  Management (1) |   | $                                 | 1,328  | (3)    |                             | $      | 896 |   |   | $ | 3,805 | (4) |   | $ | 2,522 |   |
| Property              Management (2)  |   |                              | 63     |   |                             |   | 63 |   |   |   | 193 |   |   |   | 149 |   |

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

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

|   | (3) | Before                credit of $8,000 discussed below. |
|--------|-----|---------------------------------------------------------|

|   | (4) | Before                credit of $159,000 discussed below. |
|--------|-----|-----------------------------------------------------------|

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

| **15.** | **Related-Party                Transactions (Continued)** |
|---------|-----------------------------------------------------------|

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

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

| **16.** | **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, |   |
|                                                                   |   | 2007                                      |   |   | 2006                                     |   |   | 2007 |   |   | 2006 |   |
| **Operating                Properties**                                |   |                                      |   |   |                                     |   |   |   |   |   |   |   |
| Rents  and                reimbursements                     |   | $                                         | 9,873  |   |                                     | $      | 9,727 |   |   | $ | 30,705 |   |   | $ | 27,869 |   |
| Loss                on extinguishment of debt                          |   |                                      | -      |   |                                     |   | (521 | ) |   |   | (320 | ) |   |   | (646 | ) |
| Less                - operating expenses                               |   |                                      | (1,556 | )      |                                     |   | (1,129 | ) |   |   | (3,895 | ) |   |   | (2,951 | ) |
| Less                - real estate taxes                                |   |                                      | (499   | )      |                                     |   | (329 | ) |   |   | (1,366 | ) |   |   | (908 | ) |
| Equity                in loss of Sealy Northwest Atlanta, L.P.         |   |                                      | (239   | )      |                                     |   | - |   |   |   | (502 | ) |   |   | - |   |
| Equity                in loss of Sealy Nashville                       |   |                                      | (408   | )      |                                     |   | - |   |   |   | (790 | ) |   |   | - |   |
|      Net                operating income      |   |                                      | 7,171  |   |                                     |   | 7,748 |   |   |   | 23,832 |   |   |   | 23,364 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Loans**                                                              |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                               |   |                                      | 1,283  |   |                                     |   | 3,333 |   |   |   | 6,938 |   |   |   | 9,801 |   |
| Equity                in earnings of preferred equity investment       |   |                                      | 3,044  |   |                                     |   | 1,887 |   |   |   | 10,441 |   |   |   | 4,856 |   |
| Equity                in earnings (loss) of Concord Debt Holdings, LLC |   |                                      | 2,952  |   |                                     |   | (770 | ) |   |   | 7,534 |   |   |   | (21 | ) |
| Provision                for loss on loan receivable                   |   |                                      | -      |   |                                     |   | - |   |   |   | (1,266 | ) |   |   | - |   |
|      Net                operating income      |   |                                      | 7,279  |   |                                     |   | 4,450 |   |   |   | 23,647 |   |   |   | 14,636 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Real                Estate Securities**                              |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                                                              |   |                                      | 1,199  |   |                                     |   | 229 |   |   |   | 3,625 |   |   |   | 640 |   |
| Gain                on sale of real estate securities                  |   |                                      | -      |   |                                     |   | 619 |   |   |   | 9,982 |   |   |   | 8,125 |   |
| Assignment                of exclusivity agreement - net lease assets  |   |                                      | -      |   |                                     |   | 833 |   |   |   | - |   |   |   | 2,500 |   |
| Equity                in earnings of Newkirk Realty Trust              |   |                                      | -      |   |                                     |   | 4,475 |   |   |   | - |   |   |   | 7,777 |   |
| Equity                in earnings (loss) of Lex-Win Acquisition        |   |                                      | 135    |   |                                     |   | - |   |   |   | (39 | ) |   |   | - |   |
|      Net                operating income      |   |                                      | 1,334  |   |                                     |   | 6,156 |   |   |   | 13,568 |   |   |   | 19,042 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Operating Income**                                |   |                                      | 15,784 |   |                                     |   | 18,354 |   |   |   | 61,047 |   |   |   | 57,042 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Less                - Depreciation and Amortization**                |   |                                      | 2,957  |   |                                     |   | 3,048 |   |   |   | 8,832 |   |   |   | 8,450 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Less                - Interest Expense**                             |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating                Properties                                    |   |                                      | 3,614  |   |                                     |   | 3,594 |   |   |   | 10,804 |   |   |   | 10,719 |   |
| Loans                                                                  |   |                                      | 1,331  |   |                                     |   | 2,173 |   |   |   | 5,289 |   |   |   | 6,209 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Corporate                Income (Expense)**                          |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest                income                                         |   |                                      | 565    |   |                                     |   | 175 |   |   |   | 2,432 |   |   |   | 679 |   |
| Interest                expense                                        |   |                                      | (1,966 | )      |                                     |   | (1,911 | ) |   |   | (5,849 | ) |   |   | (6,201 | ) |
| General                and administrative (1)                          |   |                                      | (2,028 | )      |                                     |   | (1,795 | ) |   |   | (5,859 | ) |   |   | (5,015 | ) |
| State                and local taxes                                   |   |                                      | (14    | )      |                                     |   | (110 | ) |   |   | (485 | ) |   |   | (330 | ) |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations before                |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| minority                interest                                       |   |                                      | 4,439  |   |                                     |   | 5,898 |   |   |   | 26,361 |   |   |   | 20,797 |   |
| Minority                interest                                       |   |                                      | 40     |   |                                     |   | (737 | ) |   |   | (502 | ) |   |   | (2,088 | ) |
| Income                from continuing operations                       |   |                                      | 4,479  |   |                                     |   | 5,161 |   |   |   | 25,859 |   |   |   | 18,709 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                     |   |                                      | 891    |   |                                     |   | 25 |   |   |   | 988 |   |   |   | 81 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                          |   | $                                         | 5,370  |   |                                     | $      | 5,186 |   |   | $ | 26,847 |   |   | $ | 18,790 |   |
| **Capital                Expenditures**                                |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating                properties                                    |   | $                                         | 411    |   |                                     | $      | 196 |   |   | $ | 1,087 |   |   | $ | 1,190 |   |
|                                                                   |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| (1)                After credits - See Note 15.                        |   |                                      |   |   |                                     |   |   |   |   |   |   |   |   |   |   |   |

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

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

|                                           |   |                              |   |   |                             |   |   | September                30, |    |   | December                31,  |   |
|------------------------------------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|--------|------------------------------|---------|--------|------------------------------|--------|
|                                           |   |                              |   |   |                             |   |   | 2007                         |    |   | 2006                         |   |
| **Identifiable                Assets**         |   |                              |   |   |                             |   |   |                         |    |   |                         |   |
| Operating                Properties            |   |                              |   |   |                             |   |   | $                            | 285,171 |   |                         | $      | 271,991 |   |
| Loans                                          |   |                              |   |   |                             |   |   |                         | 320,262 |   |                         |   | 363,089 |   |
| Real                Estate Securities          |   |                              |   |   |                             |   |   |                         | 87,930  |   |                         |   | 104,392 |   |
| Cash                and Cash Equivalents  |   |                              |   |   |                             |   |   |                         | 55,370  |   |                         |   | 89,463 |   |
| Other                                          |   |                              |   |   |                             |   |   |                         | 22,904  |   |                         |   | 22,685 |   |
| **Total                Assets**                |   |                              |   |   |                             |   |   | $                            | 771,637 |   |                         | $      | 851,620 |   |
|                                           |   |                              |   |   |                             |   |   |                         |    |   |                         |   |   |   |
|                                           |   |                              |   |   |                             |   |   |                         |    |   |                         |   |   |   |
|                                           |   | Three                Months Ended |   |   | Nine                Months Ended |   |
|                                           |   | September                30,      |   |   | September                30,     |   |   | September                30, |    |   | September                30, |   |
|                                           |   | 2007                              |   |   | 2006                             |   |   | 2007                         |    |   | 2006                         |   |
| **Revenues**                                   |   |                              |   |   |                             |   |   |                         |    |   |                         |   |   |   |
| Operating                Properties            |   | $                                 | 9,873  |   |                             | $      | 9,727  |                         |    | $      | 30,705                       |   |   | $ | 27,869 |   |
| Loans                                          |   |                              | 1,283  |   |                             |   | 3,333  |                         |    |   | 6,938                        |   |   |   | 9,801 |   |
| Real                Estate Securities          |   |                              | 1,199  |   |                             |   | 229    |                         |    |   | 3,625                        |   |   |   | 640 |   |
| **Total                Revenue**               |   | $                                 | 12,355 |   |                             | $      | 13,289 |                         |    | $      | 41,268                       |   |   | $ | 38,310 |   |

**17.      Restatement**

|                                                          |   | Net                Income |   |   | Earnings                Per Common Share -Basic |   |
|---------------------------------------------------------------|--------|---------------------------|--------|--------|-------------------------------------------------|--------|
| Nine                Months Ended September 30, 2006           |   |                      |   |   |                                            |   |
| As                reported                                    |   | $                         | 18,790 |   |                                            | $      | 0.44 |   |
| After                Application of EITF                03-06 |   | $                         | 18,790 |   |                                            | $      | 0.37 |   |

|                                                          |   |   |   |   |   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Three                Months Ended September 30, 2006          |   |   |   |   |   |   |
| As                reported                                    |   | $      | 5,186  |   |   | $      | 0.11 |   |
| After                Application of EITF                03-06 |   | $      | 5,186  |   |   | $      | 0.10 |   |

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30,              2007**

**NOTES              TO UNAUDITED CONSOLIDATED FINANCIAL              STATEMENTS**

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

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

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

**Overview**

----

**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

|                                                          |   | For                the Three Months Ended |      |   | For                the Nine Months Ended |   |
|---------------------------------------------------------------|--------|-------------------------------------------|-----------|--------|------------------------------------------|--------|
|                                                          |   | September                30, 2007         |      |   | September                30, 2006        |   |   | September                30, 2007 |   |   | September                30, 2006 |   |
| Net                income                                     |   | $                                         | 5,370,000 |   |                                     | $      | 5,186,000 |   |   | $ | 26,847,000 |   |   | $ | 18,790,000 |   |
|                                                          |   |                                      |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income per Common Share, basic             |   | $                                         | 0.08      |   |                                     | $      | 0.10 |   |   | $ | 0.36 |   |   | $ | 0.37 |   |
|                                                          |   |                                      |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                income per Common Share, diluted           |   | $                                         | 0.08      |   |                                     | $      | 0.10 |   |   | $ | 0.36 |   |   | $ | 0.36 |   |
|                                                          |   |                                      |      |   |                                     |   |   |   |   |   |   |   |   |   |   |   |
| Net                cash flow provided by operating activities |   |                                      |      |   |                                     |   |   |   |   | $ | 23,777,000 |   |   | $ | 21,045,000 |   |

|                                            |   | September                30, 2007 |    | December                31, 2006 |   |
|-------------------------------------------------|--------|-----------------------------------|--------------|----------------------------------|--------|
| Total                assets                     |   | $                                 | 771,637,000  | (1)                              | $      | 851,620,000 |   |
|                                            |   |                              |         |                   |   |   |   |
| Total                shareholders’ equity |   | $                                 | 325,924,000  |                   | $      | 323,586,000 |   |

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

|   | • | On                July 20, 2007, the tender offer made by Lex-Win Acquisition LLC                (“Lex-Win”), an entity in which we hold a 28% ownership interest, to                acquire up to 45,000,000 shares of common stock in Wells Real Estate                Investment Trust, Inc. (“Wells”) (now known as Piedmont Office Realty                Trust, Inc.) at a price per share of $9.30 expired.  At the                expiration of the offer, Lex-Win had received tenders based on the                letters                of transmittal it received for approximately 4,800,000 shares representing                approximately 1% of the outstanding shares in Wells.  After                submission of the letters of transmittal to Wells, the actual number                of                shares acquired in Wells was approximately                3,900,000. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

|   | • | On                July 24, 2007, a venture in which we hold a 60% interest foreclosed                on its                loan receivable, collateralized by approximately 241,000 square feet                of                commercial space and an indoor parking garage with 133 spaces located                at                800 South Wells, Chicago, Illinois and commonly referred to as River                City.  Following an additional appeal, the foreclosure sale was                confirmed and finalized on October 2, 2007 and the venture acquired                title                to the property.  Effective October 2, 2007, we now account for                this as a real estate investment on our Balance Sheet and record                property                operations in our Statement of                Operations. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | On                September 12, 2007, one of the properties in the Marc Realty portfolio,                216 West Jackson, Chicago, Illinois, in which we held a 7.65% convertible                mezzanine loan and a preferred interest, was sold to an unaffiliated                third                party.  We received $7,527,000, exclusive of interest, on our                original investment of $5,913,000. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | On                July 23, 2007, we entered into work-out agreements with Vision Property                Services, LLC (“Vision”), the borrower under the $1,250,000 term loan and                $1,000,000 line of credit (the “Vision Loans”) made by us to                Vision.  Pursuant to the work-out agreements (i) Vision                transferred to WRT-Vision Holding (an entity owned by us and Vision)                its                ownership interests in three entities (the “Transferred                Entities”)  that own an interest in multi-family apartment                buildings located in Littleton, Colorado, Overland Park, Kansas and                Kansas                City, Kansas, (ii) WRT-Vision Holding assumed the obligations under                the                Vision Loans, (iii) the interest rate on the Vision Loans was reduced                to                12% per annum, and (iv) the operating agreement of WRT-Vision Holding                was                modified to provide that we are now effectively the managing member                of                WRT-Vision Holding and that all distributions by WRT-Vision Holding                after                satisfaction of the Vision Loans, plus any additional advances made                by us                on account of the Transferred Entities plus interest on such advances                at                15% per annum (the “Additional Advances”), are to be made 50% to us and                50% to Vision, except for proceeds from the Creekwood investment                which are                allocated 96% to us and 4% to Vision.  In addition, Vision has                the right to acquire from WRT-Vision Holding its interest in the                Transferred Entities at any time prior to July 23, 2008 for a purchase                price equal to the then outstanding balance of the Vision Loans plus                the                Additional Advances. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Concord                Debt Holdings LLC (“Concord”), a joint venture in which we hold a 50%                interest, acquired $16,525,000 of B-Notes and $98,660,000 of mezzanine                loans.  In addition, Concord received principal repayments and                payoffs of approximately                $80,379,000. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Concord      Debt Holdings**

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

**Critical      Accounting Policies and Estimates**

**Recently      Issued Accounting Standards**

**Results      of Operations**

**Results      of Operations – Nine Months Ended September 30, 2007 Versus September 30,      2006**

*Net      Earnings*

*Operating      Properties*

|   | • | rental                income increased by $2,836,000 to $30,705,000 due                to: |
|--------|---------|--------------------------------------------------------------------------------------------|

|   | - | $1,167,000                increase at our Chicago, Illinois (Ontario) property resulting from                a                $1,123,000 tenant lease buyout in June                2007 |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | $1,035,000                increase at our Lisle, Illinois properties, which were acquired during                the                first quarter of 2006 |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | $596,000                increase at our Jacksonville, Florida property as a result of leasing                the                property, which   had been vacated by Winn Dixie in                November 2005, subsequent to the first quarter of                2006 |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | the                receipt of $525,000 of rental revenue from Creekwood Apartments                (“Creekwood”), which was acquired at the end of the first quarter of                2007 |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

|   | - | $30,000                increase at our Circle Tower                property |
|--------|---|-----------------------------------------------------------------------------|

|   | - | $529,000                decrease at our Orlando, Florida property due to a lease modification                effective January 1, 2007 |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | operating                expenses increased by $944,000 to $3,895,000 due                to: |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | real                estate tax expense increased by $458,000 due                to: |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | interest                expense related to our operating properties increased by $85,000                to                $10,804,000 for the nine months ended September 30, 2007 compared                to                $10,719,000 for the nine months ended September 30,                2006 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loss                on extinguishment of debt was $320,000 for the nine months ended                September                30, 2007 compared to $646,000 for the same period in 2006.  The                loss in 2007 was due to a $40,000,000 paydown on our Finova debt,                and the                loss in 2006 was due to the refinancing of certain first mortgage                debt on                more favorable terms |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | depreciation                and amortization expense relating to our operating properties increased                by                $382,000 to $8,832,000 for the nine months ended September 30, 2007                compared to $8,450,000 for the nine months ended September 30, 2006                as a                result of property acquisitions during 2006 and                2007 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | equity                in loss on our investment in Sealy Northwest Atlanta, L.P., acquired                in                December 2006, and Sealy Airpark Nashville, acquired in April 2007,                was                $1,292,000 for the nine months ended September 30, 2007 as a result                of                depreciation and amortization exceeding net operating income for                these                properties. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Loans*

|   | · | equity                investment in Concord (entered into on March 31, 2006) generated                $7,534,000 of equity income during the nine months ended September                30,                2007 as compared to an equity loss of $21,000 for the nine months                ended                September 30, 2006.  The increase is due primarily to the Trust                investing in Concord in April 2006 and Concord ramping up operations                during 2006 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | earnings                from preferred equity investment increased by $5,585,000 to $10,441,000                for the nine months ended September 30, 2007.  The increase was                due to the sales of two of the properties in the Marc Realty portfolio                which generated a return on our equity investment of approximately                $6,354,000, excluding interest.  This increase was partially                offset by a decrease in earnings as a result of having a lower investment                balance in 2007 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                income of $96,000 from our Vision term loan which was originated                in                December 2006 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | provision                for loss on loan receivable of $1,266,000 recorded on our Vision                term loan                at September 30, 2007 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                income on the Toy Building loan, which was fully satisfied in May                2007,                decreased by $2,342,000 during the nine months ended September 30,                2007 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                income decreased by $669,000 on our River City loans which were acquired                during the first quarter of 2006 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

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

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

*Real      Estate Securities*

*Corporate      Activities*

*State      Income Taxes*

**Results      of Operations – Three Months Ended September 30, 2007 Versus September 30,      2006**

*Net      Earnings*

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

*Operating      Properties*

|   | · | rental                income increased by $146,000 to $9,873,000 due                to: |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | - | $150,000                increase at our Lisle, Illinois properties, which were acquired during                the                first quarter of 2006 |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | $106,000                increase at our Jacksonville, Florida property as a result of releasing                efforts in 2006 and 2007 |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | - | the                receipt of $223,000 of rental revenue from Creekwood which was acquired                at                the end of the first quarter of                2007 |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | - | $170,000                decrease at our Chicago (Ontario) property resulting from a tenant                lease                buy out in June 2007 and a $62,000 bad debt reserve recognized in                September 2007 |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | operating                expenses increased by $427,000 to $1,556,000 due                to: |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | -  | $42,000                increase at our Chicago, Illinois (Ontario)                property  |
|--------|---------|--------------------------------------------------------------------------------------------------|
|   | - | $10,000                increase at our Circle Tower                property |
|--------|---|-----------------------------------------------------------------------------|

|   | - | $357,000                increase at our Creekwood property |
|--------|---|------------------------------------------------------------|

|   | - | $41,000                increase at our Churchill, Pennsylvania                property |
|--------|---|----------------------------------------------------------------------------------------|

|   | - | $15,000                decrease at our Jacksonville, Florida                property |
|--------|---|--------------------------------------------------------------------------------------|

|   | · | real                estate tax expense increased by $170,000 due                to: |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | interest                expense related to our operating properties increased by $20,000                to                $3,614,000 for the three months ended September 30, 2007 compared                to                $3,594,000 for the three months ended September 30,                2006 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | There                was no loss on extinguishment of debt for the three months ended                September                30, 2007 compared to a $521,000 loss for the same period in                2006.  The loss in 2006 was due to the refinancing of certain                first mortgage debt on more favorable                terms |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | depreciation                and amortization expense relating to our operating properties decreased                by                $91,000 to $2,957,000 for the three months ended September 30, 2007                compared to $3,048,000 for the three months ended September 30,                2006.  The decrease was primarily the result of a $180,000                decrease at our Sherman, Texas property, which was reclassified from                discontinued operations to continuing operations in 2006, and decreases                of                $136,000 and $90,000 at our Chicago (Ontario) property and our Orlando,                Florida property, respectively, related to the expiration of lease                in                place intangibles.  These decreases were partially offset by                increases of $317,000 related to newly acquired                properties |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | equity                in loss on our investment in Sealy Northwest Atlanta, L.P., acquired                in                December 2006, and Sealy Airpark Nashville, acquired in April 2007,                was                $647,000 for the three months ended September 30, 2007 as a result                of                depreciation and amortization exceeding  net operating income                for these properties. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Loans*

|   | · | interest                income on the Toy Building loan, which was fully satisfied in May                2007,                decreased by $1,659,000 during the three months ended September 30,                2007 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | interest                income decreased by $419,000 on our River City loans which were acquired                during the first quarter of                2006 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

|   | · | earnings                from preferred equity investment increased by $1,157,000 to $3,044,000                for                the three months ended September 30, 2007.  The increase was due                to the sale in September 2007 of one of the properties in the Marc                Realty                portfolio which generated participation income of approximately                $1,521,000 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | equity                investment in Concord (entered into on March 31, 2006) generated                $2,952,000 of equity income during the three months ended September                30,                2007 as compared to an equity loss of $770,000 for the three months                ended                September 30, 2006. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Real      Estate Securities*

*Corporate      Activities*

**Liquidity      and Capital Resources**

*General*

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

*Cash      Flows*

*Equity      Investment in Joint Venture*

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

*Dividends*

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

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

|                                                                                                                   |   | Change                  in LIBOR |    |
|------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                                   |   | -3%                              |         |   | -2% |  |   | -1% |  |   | 1% |   |   | 2% |   |   | 3% |  |
| Change                  in consolidated interest expense                                                               |   |                             | (1,273  | ) |   |   | (849 | ) |   |   | (424 | ) |   |   | 424 |   |   |   | 849 |   |   |   | 1,273 |   |
| Pro-rata                  share of change in interest expense                  of debt on non-consolidated entity |   |                             | (8,878  | ) |   |   | (5,919 | ) |   |   | (2,959 | ) |   |   | 2,959 |   |   |   | 5,919 |   |   |   | 8,878 |   |
| Minority                  partners share                                                                               |   |                             | 114     |   |   |   | 76 |   |   |   | 38 |   |   |   | (38 | ) |   |   | (76 | ) |   |   | (114 | ) |
| Proforma                  (increase) decrease in net income                                                            |   | $                                | (10,037 | ) |   | $ | (6,692 | ) |   | $ | (3,345 | ) |   | $ | 3,345 |   |   | $ | 6,692 |   |   | $ | 10,037 |   |

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

*Accounting for Certain Investments in Debt and Equity      Securities*

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

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

**Other      Matters**

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

**PART      II. OTHER INFORMATION**

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

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**WINTHROP            REALTY TRUST**

**FORM            10-Q SEPTEMBER 30, 2007**

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

|   |  |
|--------|--|

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

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

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

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

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**WINTHROP              REALTY TRUST**

**FORM              10-Q SEPTEMBER 30, 2007**

|   |                                                                                                                                                                                                                                                                  |   |   |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| 10.29  | Loan                Agreement, dated as of December 16, 2005, between WRT Realty L.P.                and                KeyBank, National Association.                                                                                                                |   | (m)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.30  | Guaranty                from Winthrop Realty Trust in favor of KeyBank, National                Association.                                                                                                                                                          |   | (m)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.31  | Amended                and Restated Limited Liability Company Agreement of Concord Debt                Holdings                LLC, dated September 21, 2007, among The Lexington Master Limited                Partnership, WRT Realty, L.P. and WRP Management LLC. |   | (w)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.32  | Master                Repurchase Agreement, dated March 30, 2006, among Column Financial                Inc.,                111 Debt Acquisition LLC, 111 Debt Acquisition Mezz LLC and Newkirk                Realty                Trust, Inc.                     |   | (o)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.33  | Master                Repurchase Agreement, dated May 24, 2006, between Bear, Stearns                International Limited and 111 Debt Acquisition-Two LLC.                                                                                                          |   | (p)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.34  | Agreement                between Michael L. Ashner and Winthrop Realty Trust dated July 23,                2006.                                                                                                                                                      |   | (q)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 10.35  | Winthrop                Realty Trust 2007 Long Term Stock Incentive Plan.                                                                                                                                                                                             |   | (v)    |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 31     | Certifications                Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                              |   | *      |
|   |                                                                                                                                                                                                                                                                  |   |   |
| 32     | Certification                Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                               |   | *      |

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

| (t) | Incorporated                by reference to the Trust’s Form 8-K dated March 2,                2007 |
|-----|-----------------------------------------------------------------------------------------------------------|

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

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

| (w) | Incorporated                by reference to the Trusts Form 8-K dated September 27,                2007. |
|-----|----------------------------------------------------------------------------------------------------------|

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