Compass Point Starts Winthrop Realty Trust (FUR) at Buy, Sees $21 Liquidation NAV

Compass Point initiates coverage on Winthrop Realty Trust (NYSE: FUR) with a Buy rating and a price target of $21.00 over the liquidation period which ends August 5, 2016.

Analyst Wilkes Graham commented, "The Board announced a voluntary liquidation in April 2014 which was approved by shareholders on August 5, 2014 allowing for a 2-year liquidation period. The company's detailed asset-level disclosures provide for a solid basis from which to estimate future liquidation proceeds. We arrive at a Liquidation NAV of $21.03 compared to the company's recent estimate of $18.35. The most critical asset in our NAV is 20 Times Square, the company's $1B hotel/retail development in NYC. In this report, we lay out in detail the assumptions in our Liquidation NAV model and note that the longer FUR waits to sell its interests in assets in which we ascribe NAV upside, the greater the potential returns for shareholders along the way. Further, management, led by Michael Ashner of previous liquidations lore, could sell the company at any point, thereby accelerating returns."

For an analyst ratings summary and ratings history on Winthrop Realty Trust click here. For more ratings news on Winthrop Realty Trust click here.

Shares of Winthrop Realty Trust closed at $16.92 yesterday.

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