BINGHAM FARMS, Mich., March 15 /PRNewswire/ -- Malan Realty Investors,
Inc. (NYSE: MAL), a self-administered real estate investment trust (REIT),
today announced its reply to Kensington Investment Group, Inc.'s latest filing
with the Securities and Exchange Commission, reiterating its offer to provide
board of directors representation for Kensington.
    In an amended form 13D, Kensington expressed its dissatisfaction with
Malan's offer to expand the size of its board by one director and to accept a
Kensington nominee.  The amendment also reported that "in order to preserve
its rights under the advance notice requirements of" Malan's by-laws,
Kensington has "delivered a Notice of Shareholder Nominations With Respect to
2000 Annual Meeting."  The Notice listed five individuals that may be proposed
as nominees at the annual meeting of shareholders, which will be held on May
10, 2000.
    Yesterday, at Malan's regularly scheduled board meeting, the board, in
addition to declaring its 23rd consecutive quarterly cash dividend since its
initial public offering, reiterated its offer to expand the size of the board
from five directors to six and to accept a Kensington nominee to fill the
additional position.  The board stated on a unanimous basis, however, that it
felt very strongly that it would be inappropriate and unfair to other
shareholders to accept Kensington's original demand for more than one-third of
the seats on Malan's board of directors, when Kensington owns less than 10
percent of Malan's common stock.
    "I am still surprised that Kensington rejected our offer of board
representation because it would meet its stated goal of providing input to our
board's continuing efforts to enhance shareholder value," said Anthony S.
Gramer, president and chief executive officer of Malan Realty Investors.
"However, if Kensington elects to start a proxy fight, the board of directors
will vigorously fight to protect the interests of all of Malan's shareholders,
not just the special interests of a few.  The board is exploring all available
strategic alternatives to the company with the intent of enhancing the value
of all shareholders' investment in the company."
    The Board continues to actively work with Prudential Securities
Incorporated regarding a wide variety of strategic alternatives to enhance
shareholder value.
    Malan Realty Investor, 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 9 states
that contains an aggregate of approximately 6.0 million square feet of GLA.
In January 2000, Malan announced funds from operations for 1999 rose
26 percent from 1998 on a 9 percent increase in total revenues.
    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 .

    CONTACT:  Michael K. Kaline, Vice President of Malan Realty, 248-644-7110;
or Fred Nachman of Corporate.Technology Communications, Inc., 312-832-9300,
ext. 202, for Malan Realty.

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