BINGHAM FARMS, Mich., Jan. 27 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced total funds from operations (FFO) increased 8 percent in the fourth
quarter of 1999.
For the quarter ended December 31, 1999, FFO was $2.8 million or 55 cents
per basic share vs. $2.6 million or 52 cents per basic share for the quarter
ended December 31, 1998. FFO on a diluted basis (assuming conversion of
convertible debt securities and inclusion of other common stock equivalents)
was $4.5 million or 48 cents per share in the fourth quarter of 1999 vs.
$4.4 million or 47 cents per share in the fourth quarter of 1998.
Total revenues, consisting primarily of rent and recoveries from tenants,
were $11.0 million in both the fourth quarter of 1999 and 1998.
For the year ended December 31, 1999, FFO was $10.2 million, an increase
of 26 percent from $8.1 million for the year ended December 31, 1998. FFO was
$1.98 per basic share in 1999 vs. $1.80 per basic share in 1998, up 10
percent. FFO on a diluted basis was $17.0 million or $1.82 per share in 1999
vs. $15.7 million or $1.71 per share in 1998. Total revenues (excluding
nonrecurring net gains on sales of properties of $1.6 million in 1999)
increased 9 percent to $43.3 million in 1999 from $39.6 million in 1998.
FFO for 1999 reflects a change in the company's method of accounting for
contingent (percentage) rents applied retroactively to January 1, 1999. The
change is pursuant to SEC Staff Accounting Bulletin No. 101 issued in December
1999. Had this same method been utilized by the company in 1998 there would
have been no effect on FFO for the fourth quarter 1998 and FFO for the year
1998 would have been decreased by $67,000 or 2 cents per share on a basic
basis and 1 cent per share on a diluted basis.
Malan continued to repurchase and retire its 9-1/2% Convertible
Subordinated Debentures due July 2004. With the repurchase of $2.2 million
principal of debentures during the fourth quarter of 1999, approximately
$42.7 million aggregate principal of debentures currently remain outstanding.
Malan repurchased the debentures at an average discount to par of 10 percent.
The company announced its 1999 dividend distributions included a 54.0
percent return of capital for its shareholders. The remaining distribution
is 32.6 percent ordinary taxable income, 12.1 percent long-term capital gain
(20 percent rate) and 1.3 percent unrecaptured Section 1250 gain for federal
income tax purposes. Malan paid total distributions of $1.70 per share on an
annual basis for 1999.
"Our third consecutive year of record revenues and FFO reflects the
benefits of acquisitions, redevelopment projects and re-tenanting activities,"
said Malan President and Chief Executive Officer Anthony S. Gramer.
"Occupancy of 96 percent at year-end 1999 was achieved by focusing on leasing
activities that enhance the value of our portfolio."
"Based on our strengthened financial position and activities currently in
the pipeline, we remain committed to improving value for our shareholders and
optimistic about our future," said Gramer. "Malan will continue to build
value through redevelopment and expansion projects and leasing programs that
increase occupancy and returns on investment. We are in negotiations for
buyouts of existing leases, which will allow us to re-tenant space at
prevailing market rates and further diversify our retail tenant base."
Gramer also noted that, as previously announced, Prudential Securities is
continuing their efforts as Malan's financial advisor in reviewing a wide
variety of capital markets strategic alternatives to enhance shareholder
value.
Malan Realty Investors, Inc. owns, acquires, redevelops and manages
properties that are leased primarily to national and regional retail
companies. The company owns a portfolio of 65 properties located in 10 states
that contains an aggregate of approximately 6.0 million square feet of GLA.
The company currently has 5.2 million common shares outstanding.
Safe Harbor Statement: Certain statements in this release regarding
anticipated operating results time are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Although the
Company believes the statements and projections are based upon reasonable
assumptions, actual results may differ from those projected. Key factors that
could cause actual results to differ materially include economic downturns,
successful and timely completion of acquisitions, renovations and development
programs, leasing activities and other risks associated with the commercial
real estate business, and as detailed in the Company's filings from time
to time with the Securities and Exchange Commission.
News releases for Malan Realty Investors are available through
Company News On-Call by fax at 800-758-5804, ext. 114165, or
http://www.prnewswire.com .
For more information contact Michael K. Kaline, Vice President of Malan
Realty Investors, 248-644-7110, or Fred Nachman of Corporate Technology
Communications, Inc., 312-832-9300, ext. 202.
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Dec. 31, Twelve Months Dec. 31,
1999 1998 1999 1998
Revenues
Minimum rent $7,588 $7,641 $30,662 $28,084
Percentage and
overage rents 580 589 1,307 1,215
Recoveries from tenants 2,534 2,690 10,688 9,954
Interest and other income 365 67 615 311
Gain (loss) on sale
of real estate (23) 0 1,602 0
Total Revenues 11,044 10,987 44,874 39,564
Expenses
Property operating
and maintenance 556 737 3,115 2,876
Other operating expenses 479 424 1,752 1,615
Real estate taxes 2,347 2,257 8,612 8,134
General and administrative 523 711 2,024 2,068
Depreciation and
amortization 1,620 1,518 6,368 5,633
Loss on impairment
of real estate 0 0 0 431
Total Operating Expenses 5,525 5,647 21,871 20,757
Operating Income 5,519 5,340 23,003 18,807
Interest Expense 4,328 4,225 17,550 16,770
Net Income before
Extraordinary Item
and Cumulative
Effect of Change in
Accounting Principle 1,191 1,115 5,453 2,037
Extraordinary Item:
Gain (loss) on
extinguishment of debt 170 (35) (289) (191)
Net Income before
Cumulative Effect
of Change in
Accounting Principle 1,361 1,080 5,164 1,846
Cumulative Effect
of Change in
Accounting Principle 0 0 (522) 0
Net Income $1,361 $1,080 $4,642 $1,846
Earnings per share
Before Extraordinary
Item and Cumulative
Change in
Accounting Principle:
Basic and Diluted $0.23 $0.22 $1.05 $0.45
Earnings per share
Before Cumulative
Change in
Accounting Principle:
Basic and Diluted $0.26 $0.21 $1.00 $0.41
Earnings per share:
Basic and Diluted $0.26 $0.21 $0.90 $0.41
FFO Adjustments:
Depreciation and
Amortization:
Depreciation of
buildings and
improvements $1,533 $1,459 $6,044 $5,399
Amortization of
tenant allowances
and improvements 45 28 173 113
Amortization of
leasing costs 40 29 146 114
(Gain) loss on sale
of real estate 23 0 (1,602) 0
(Gain) loss on
extinguishment of debt (170) 35 289 191
Loss on impairment
of real estate 0 0 0 431
Cumulative effect
of change in 0 0 522 0
accounting principle
Funds From
Operations, Basic 2,832 2,631 10,214 8,094
Interest expense on
convertible securities 1,598 1,652 6,520 7,287
Amortization of deferred
financing costs on
convertible securities 69 72 283 316
Funds From
Operations, Diluted $4,499 $4,355 $17,017 $15,697
Funds From
Operations Per Share:
Basic $0.55 $0.52 $1.98 $1.80
Diluted $0.48 $0.47 $1.82 $1.71
Weighted average
shares outstanding:
Basic 5,172 5,168 5,170 4,507
Diluted 5,172 5,186 5,170 4,524
Diluted, assuming
conversion of
convertible securities 9,287 9,444 9,372 9,206
SOURCE Malan Realty Investors, Inc.
 back to top
Related links:
http://www.prnewswire.com
CONTACT:
Michael K. Kaline, Vice President of Malan
Realty Investors, 248-644-7110, or Fred Nachman of Corporate
Technology Communications, Inc., 312-832-9300, ext. 202
|
