BINGHAM FARMS, Mich., Jan. 31 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced financial results for the fourth quarter and full year of 2000.
For the quarter ended December 31, 2000, funds from operations (FFO) was
$1.3 million or 25 cents per basic share vs. $2.8 million or 55 cents per
basic share for the quarter ended December 31, 1999. FFO on a diluted basis
(assuming conversion of convertible debt securities and inclusion of other
common stock equivalents) was $3.0 million or 32 cents per share in the fourth
quarter of 2000 vs. $4.5 million or 48 cents per share in the fourth quarter
of 1999. Total revenues consisting primarily of rent and recoveries from
tenants, were $10.4 million in the fourth quarter of 2000 vs. $11.0 million
(excluding net losses from sales of properties) in the fourth quarter of 1999.
For the year ended December 31, 2000, FFO was $4.8 million or 92 cents per
basic share vs. $10.2 million or $1.98 per basic share for the year ended
December 31, 1999. FFO on a diluted basis was $11.4 million or $1.23 per
share in 2000 vs. $17.0 million or $1.82 per share in 1999. Total revenues
(excluding net gains on property sales of approximately $3.2 million) were
$41.8 million in 2000 compared with $43.3 million (excluding net gains on
property sales of approximately $1.6 million) in 1999.
Results for the fourth quarter and year 2000 were impacted significantly
by the closure of the Meridian Theater at Bricktown Square in Chicago,
Illinois. In addition to a loss in revenues resulting from the closure, the
company incurred a one-time expense of approximately $380,000 in the fourth
quarter of 2000 related to the potential uncollectibility of receivables from
the former tenant. Annual revenues from the theater had totaled approximately
$930,000.
FFO for 2000 was also affected by nonrecurring expenses totaling
approximately $3.2 million associated with a proxy contest and the resulting
change in control. The company noted that although these expenses are
nonrecurring in nature, the October 1999 White Paper issued by the National
Association of Real Estate Investment Trusts (NAREIT) requires that these
items be included in the calculation of FFO. The White Paper excludes from
FFO calculations extraordinary items as defined under generally accepted
accounting principles, as well as gains and losses from sales of depreciable
operating property.
"We are glad to put the year 2000 behind us and to move forward in 2001,"
said Jeffrey Lewis, chief executive officer of Malan Realty Investors. "While
we face some significant obstacles in the ensuing year, the 2000 results are
not indicative of the earnings potential of this company. The board of
directors is committed to utilizing a number of strategies to enhance
shareholder value in the future. To improve the portfolio and strengthen our
financial position, we will consider selective property development and
acquisitions, asset sales and stock buybacks. The company is presently in the
process of identifying assets for disposition."
Malan said it purchased 11,300 shares of its common stock during 2000 at
an average price of $10.21 per share. The board authorized the purchase of up
to 250,000 shares of common stock in August 2000. The company has 5.2 million
common shares outstanding.
The company also announced that its 2000 dividend distributions included
an 83.8 percent return of capital for its shareholders. The remaining
distribution of 16.2 percent is long-term capital gain (20 percent rate).
Malan paid total distributions of $1.70 per share on an annual basis for 2000.
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 64 properties located in 9 states
that contains an aggregate of approximately 5.9 million square feet of gross
leasable area.
Safe Harbor Statement: Certain statements in this release regarding
anticipated operating results 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,
bankruptcies and other financial difficulties of tenants, 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 on the company's
web site at http://www.malanreit.com or through Company News On-Call by fax at
800-758-5804, ext. 114165, or http://www.prnewswire.com .
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Twelve Months
Ended Ended
December 31, December 31,
2000 1999 2000 1999
Revenues
Minimum rent $7,217 $7,588 $29,430 $30,662
Percentage and overage rents 588 580 1,531 1,307
Recoveries from tenants 2,492 2,534 10,222 10,688
Interest and other income 77 365 661 615
Gain (loss) on sales
of real estate (23) 3,158 1,602
Total Revenues 10,374 11,044 45,002 44,874
Expenses
Property operating
and maintenance 947 556 3,215 3,115
Other operating expenses 849 479 2,151 1,752
Real estate taxes 2,259 2,347 8,409 8,612
General and administrative 505 523 2,156 2,024
Proxy contest and related
change in control costs 30 3,200
Depreciation and amortization 1,695 1,620 6,795 6,368
Impairment of real estate 190 190
Total Operating Expenses 6,475 5,525 26,116 21,871
Operating Income 3,899 5,519 18,886 23,003
Interest Expense 4,485 4,328 17,962 17,550
Income (loss) before
extraordinary item and
cumulative effect of change
in accounting principle (586) 1,191 924 5,453
Extraordinary Item:
Gain (loss) on extinguishments
of debt 170 (93) (289)
Income (loss) before cumulative
effect of change in accounting
principle (586) 1,361 831 5,164
Cumulative effect of change
in accounting principle (522)
Net income (loss) ($586) $1,361 $831 $4,642
Earnings per share before
extraordinary item and
cumulative effect of change
in accounting principle:
Basic and diluted ($0.11) $0.23 $0.18 $1.05
Earnings per share before
cumulative effect of change
in accounting principle:
Basic and diluted ($0.11) $0.26 $0.16 $1.00
Earnings per share:
Basic and diluted ($0.11) $0.26 $0.16 $0.90
Depreciation and Amortization:
Depreciation of buildings
and improvements $1,553 $1,533 $6,255 $6,044
Amortization of tenant
allowances and improvements 89 45 365 173
Amortization of leasing costs 53 40 171 146
(Gain) loss on sales of
real estate 23 (3,158) (1,602)
(Gain) loss on extinguishments
of debt (170) 93 289
Impairment of real estate 190 190
Cumulative effect of change
in accounting principle 522
Funds From Operations, Basic 1,299 2,832 4,747 10,214
Interest expense on
convertible securities 1,590 1,598 6,356 6,520
Amortization of deferred
financing costs on convertible
securities 69 69 276 283
Funds From Operations, Diluted $2,958 $4,499 $11,379 $17,017
Funds From Operations Per Share:
Basic $0.25 $0.55 $0.92 $1.98
Diluted $0.32 $0.48 $1.23 $1.82
Weighted average shares
outstanding:
Basic 5,174 5,172 5,173 5,170
Diluted 5,174 5,172 5,180 5,170
Diluted, assuming conversion
of convertible securities 9,283 9,287 9,283 9,372
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
Michael K. Kaline, President of Malan Realty
Investors, 248-644-7110; or Fred Nachman of Marjan
Communications, 312-867-1771
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