Wellsford Real Properties, Inc. Reports First Quarter 2001 Results, Including $36.4 Million of Property Sales and $17.4 Million of Debt Repayments.

Business Editors

NEW YORK--(BUSINESS WIRE)--May 3, 2001

Wellsford Real Properties, Inc. (AMEX: "WRP") reported first quarter 2001 revenues of $11,900,234, net income available for common shareholders of $1,663,482 or $0.20 per basic and diluted share and net cash flow of $1,738,093 or $0.21 per basic and diluted share.

For the quarter ended March 31, 2000, WRP reported revenues of $6,092,239, net income available for common shareholders of $978,482 or $0.11 per basic and diluted share and net cash flow of $3,333,757 or $0.37 per basic and diluted share.

First Quarter 2001 and Subsequent Activities

Wellsford/Whitehall

In a February 2001 transaction, Wellsford/Whitehall sold five properties in Newton, MA for $18 million and recorded a gain of approximately $3.6 million. WRP's share of the gain on this transaction was approximately $1.4 million. The properties, totaling 102,000 square feet, were acquired as part of a portfolio of properties purchased in May 1998.

Wellsford/Whitehall executed 15 leases aggregating 223,000 square feet at an average rent of $28.94 per square foot.

Wellsford Capital

Value Property Trust ("VLP")

During January 2001, WRP sold the Piscataway, NJ and West Chester, PA properties, acquired as part of the 1998 merger with VLP. On May 2, 2001 WRP sold an additional property (the Cherry Hill, NJ property) bringing the total properties sold to four (including the Santa Monica, CA property which was sold in December 2000). In December 2000, WRP determined that the aggregate carrying amount of certain of the VLP assets was less than the amounts expected to be ultimately realized upon sale, less selling expenses and recorded an impairment provision to reflect such assets at estimated realizable amounts. Accordingly, no gain or loss was recorded on any of the 2001 sale transactions. WRP utilized sales proceeds to repay the $12 million outstanding balance on its loan facility.

Second Holding

At March 31, 2001 Second Holding owned $688.9 million of investment-grade collateralized debt obligations, commercial mortgage backed securities and commercial paper. It had total debt of $646.6 million at the end of the period.

Wellsford Development

Silver Mesa Sales

During 2000, WRP made the strategic decision to convert the 264 unit Silver Mesa phase of Palomino Park (its five phase 1,800 unit class A multifamily development in Highlands Ranch, a south suburb of Denver, Colorado), into condominium units and sell them to individual buyers. Sales commenced in February 2001 and through March 31, 2001, 32 of the Silver Mesa units were sold for gross proceeds of approximately $6.4 million, approximately $5.4 million of which was used to pay down principal on a loan related to the Silver Mesa project. WRP recorded a pre-tax gain of approximately $0.8 million for the three months ended March 31, 2001 from sales of the units.

Commenting on the results of the first quarter, Mr. Lynford stated, "A total of $36.4 million of property sales were consummated in the first quarter, continuing our efforts to maintain liquidity and reduce debt. Our business plan for the first six months of 2001 has targeted a total of $100 million of sales, which we think will be obtainable."

Certain statements in this press release constitute "forward-looking statements" under federal securities laws and involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results implied by such forward-looking statements. Such factors include, among others, general and local economic and business conditions, which will, among other things, affect demand for commercial and residential properties, availability and credit worthiness of prospective tenants, lease rents and the availability and cost of financing; ability to find suitable investments; competition; risks of real estate acquisition, development, construction and renovation including construction delays and cost overruns; ability to comply with zoning and other laws; vacancies at commercial and multifamily properties; dependence on rental income from real property; adverse consequences of debt financing including, without limitation, the necessity of future financings to repay debt obligations; risks of investments in debt instruments, including possible payment defaults and reductions in the value of collateral; risks of subordinate loans; risks of leverage; risks associated with equity investments in and with third parties; availability and cost of financing; interest rate risks; demand by prospective buyers of condominium and commercial properties; inability to realize gains from the real estate assets held for sale; lower than anticipated sales prices; illiquidity of real estate investments; environmental risks; and other risks

                    Wellsford Real Properties, Inc.
                         Financial Highlights


                                           For the Three Months Ended
 Consolidated Statement of  Operations                  March  31,
 -------------------------------------             2001          2000
                                                  -----          ----
                                                       (unaudited)
REVENUES
 Rental revenue........................... $  3,833,514   $  4,531,248
 Revenue from sales of residential units......6,447,600            --
 Interest revenue.........................    1,543,904      1,410,991
 Fee revenue..............................       75,216        150,000
   Total revenues......................      11,900,234      6,092,239

COSTS AND EXPENSES
 Cost of sales of residential units.......    5,650,801            --
 Property operating and maintenance.......      988,527        821,621
 Real estate taxes........................      364,822        421,578
 Depreciation and amortization............    1,050,143      1,105,320
 Property management......................      165,086        176,137
 Interest.................................    1,125,184      1,813,679
 General and administrative...............    1,635,569      1,781,995
 Amortization of deferred stock compensation... 296,085        226,668
   Total costs and expenses............      11,276,217      6,346,998

Income from joint ventures................    1,946,058      1,260,909

Income before minority interest, income tax expense and accrued
 distributions and amortization of costs on
 Convertible Trust Preferred Securities...... 2,570,075      1,006,150

Minority interest............................   (91,639)        (9,668)

Income before taxes and accrued distributions
 and amortization of costs on Convertible Trust
 Preferred Securities.........                2,478,436        996,482



Income tax expense............................. 465,000         18,000

Income before accrued distributions and amortization
  of costs on Convertible Trust
  Preferred Securities......                  2,013,436        978,482

Accrued distributions and amortization of costs on Convertible
Trust Preferred Securities, net of
 income tax benefit of  $175,000.....           349,954             --

Net income..........................       $  1,663,482    $   978,482

Net income per common share, basic........   $     0.20     $     0.11

Net income per common share, diluted.........$     0.20     $     0.11

      Weighted average number of common shares
      outstanding, basic...                   8,351,623      9,101,393

      Weighted average number of common shares
      outstanding, diluted...                 8,356,001      9,107,082


                    Wellsford Real Properties, Inc.
                         Financial Highlights
                              (continued)
                                           For the Three Months Ended
Calculation of Net Cash Flow*                         March 31,
------------------------------                   2001             2000
                                                -----             ----
                                                       (unaudited)

Net income..................................$  1,663,482   $   978,482
Add/(Deduct):
 Accumulated depreciation and provision for impairment
  on assets sold............................   2,052,119)           --
 Depreciation and amortization..............   1,023,008     1,072,943
 Share of JV depreciation and amortization..   1,103,722     1,282,332
Net cash flow...............................$  1,738,093  $  3,333,757

Net cash flow per common share, basic.......  $     0.21    $     0.37

Net cash flow per common share, diluted.....  $     0.21    $     0.37


Summary Consolidated Balance Sheet Data     March 31,     December 31,
----------------------------------------      2001              2000
                                              -----             ----
                                           (unaudited)

Real estate, net......................   $ 142,914,391   $ 159,031,033
Notes receivable......................   $  35,421,448   $  37,824,291
Investment in joint ventures..........   $ 123,556,022   $ 120,969,017
Cash and cash equivalents.............   $  35,242,858   $  36,368,706
Total assets..........................   $ 356,695,553   $ 375,769,577
Mortgage notes payable................   $  98,772,136   $ 104,403,970
Credit facility.......................      $       --   $  12,000,000
Convertible Trust Preferred
  Securities......                       $  25,000,000   $  25,000,000
Total shareholders' equity............   $ 217,961,915   $ 215,982,349
Other information:
    Common shares outstanding.........       8,351,623       8,350,378
    Book value per share..............     $     26.10     $     25.86
    Assets under management........... $ 1,565,316,000 $ 1,194,153,000

*Net Cash Flow represents net income plus depreciation and amortization on real estate assets, depreciation and amortization from unconsolidated partnerships and joint ventures, offset by accumulated depreciation and a utilization of a previously provided impairment provision on assets sold. Included in such cash flow is WRP's share of undistributed cash retained by the unconsolidated partnerships and joint ventures for continuing investment in lieu of future fundings. The number of shares that should be used for determining Net Cash Flow per share, basic and diluted, are the same number of shares used for Net Income per share, basic and diluted.