Malan Realty Investors Adopts New Strategic Plan; Declares Quarterly Cash Dividend

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Malan Realty Investors Adopts New Strategic Plan; Declares Quarterly Cash Dividend
    BINGHAM FARMS, Mich., March 14 /PRNewswire/ -- The board of directors of
Malan Realty Investors, Inc. (NYSE: MAL), a self-administered real estate
investment trust (REIT), today announced it has adopted a strategic plan.  The
elements of the new strategic plan are:

    -- The company will restructure its debt to provide maximum financial
       flexibility.  This will be done as soon as allowable under the
       constraints of the current debt structure.
    -- Malan will begin selling mature and non-strategic assets.  Sale
       proceeds will be invested in the best investment opportunities
       available within the constraints of the company's debt.  Investments
       may include repurchase of common shares, retirement of debt,
       redevelopment and repositioning of existing assets, and strategic
       investment in new real estate.  Malan may use joint venture partners
       with development capabilities to assist in accessing capital and to
       provide local expertise for these opportunities.
    -- If the company is unable to identify suitable investment opportunities,
       the company will explore all other alternatives to maximize shareholder
       value, including returning capital to shareholders following the sale
       of assets or the sale of the entire company.

    The board of directors has begun to implement the plan by authorizing the
following:

    -- the sale of seven mature assets,
    -- the purchase of up to 500,000 shares of the company's common stock in
       the open market, and
    -- the implementation of a new dividend policy.

    The board of directors announced it has declared a dividend of $0.425 to
be paid April 20, 2001 to shareholders of record on March 30, 2001.  The board
also announced that in the future it intends to declare dividends equal to
approximately two-thirds of cash available for distribution (CAD).  The
company defines CAD generally as defined funds from operations (FFO) plus
non-cash expenses not added back to net income in calculating FFO, less
recurring capital expenditures and payments of mortgage principal
amortization.  The board estimates that Malan will generate CAD of
approximately $1.50 per share for 2001, and that future dividends will be paid
quarterly at an annual rate of $1.00 per share.  Subsequent dividends may also
include amounts required to be paid to shareholders as a result of capital
gains from the sale of assets pursuant to the strategic plan.  The board
expects to review the dividend policy at least annually.
    With respect to the new dividend policy, Jeffrey Lewis, chief executive
officer of Malan Realty Investors, commented, "The reduction of our dividend
was a difficult decision.  Nevertheless, the board believes operating
dividends paid by the company should be well covered by CAD, and that this
policy is in the best long-term interest of shareholders."

    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 nine
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 sales, 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 .
SOURCE Malan Realty Investors, Inc.
http://www.malanreit.com
CONTACT:
Michael K. Kaline, President of Malan Realty
Investors, Inc., 248-644-7110; or Fred Nachman of Marjan
Communications Inc. for Malan Realty Investors, Inc.,
312-867-1771