BINGHAM FARMS, Mich., March 19 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced it has contracts for the sale of four properties
totaling $12.95 million and four signed letters of intent for twelve
additional properties for a total price of $50.45 million.
The properties under contract are located in Fairview Heights, Illinois;
Farmington Hills, Michigan; Forestville, Maryland; and Oshkosh, Wisconsin.
The properties include 424,000 square feet of gross leasable area (GLA). The
properties covered by letters of intent include eight Kmart-anchored shopping
centers and two theaters, and total approximately 1.3 million square feet of
GLA. The company also has one property under option for $900,000. The sales
of the properties under contract are expected to close within 60 to 120 days.
The company also announced that it would be making a distribution to its
shareholders later this year in order to maintain its status as a real estate
investment trust (REIT) under federal tax laws. The distribution will be
declared by September 15, 2003, which is the extended due date for the
company's federal income tax return, and is expected to be paid in the fourth
quarter of 2003. The amount of the dividend will depend on the final
determination of the company's 2002 taxable income, which management currently
estimates at approximately $3.3 million. Based on the current number of
shares outstanding, the dividend is estimated to be approximately 64 cents per
share.
Malan also announced it is revising its range of estimated cash
distributions in liquidation to $4.75 per share to $6.50 per share, compared
with the previous range of $4.75 per share to $8.50 per share. Jeffrey Lewis,
president and chief executive officer of Malan Realty Investors, said the
upper end of the range was revised to reflect changes in anticipated proceeds
from property sales given the current market environment as well as
environmental remediation issues and costs that were unanticipated when the
range of distributions was initially announced last summer.
"Although the actual proceeds from property sales to date and expected
proceeds from future sales are within 2 percent of our original estimates, the
decline in value has a significantly greater impact on a per-share basis,
given the highly leveraged position of the company," Lewis said.
The company also announced that its annual meeting of shareholders will be
held at the Community House in Birmingham, Michigan on Tuesday, May 13, 2003.
Proxy materials and the company's annual report will be mailed to shareholders
prior to the meeting.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 47 properties located in nine states that contains an
aggregate of approximately 4.4 million square feet of gross leasable area.
Safe Harbor Statement: This news release may contain forward-looking
statements. Although the company believes that the statements and projections
are based on reasonable assumptions, actual results may differ from those
projected. Key factors that could cause actual results to differ materially
include uncertainties regarding the length of time required to sell the
company's properties and execute its plan of liquidation and expenses incurred
during the liquidation period, changing market conditions affecting the sales
price of our properties, the cost of litigation in which the company is
involved, bankruptcies and other financial difficulties of tenants, including
the ultimate disposition of lease agreements with Kmart Corporation, the cost
of addressing environmental concerns, unforeseen contingent liabilities, and
other risks associated with the commercial real estate business, as detailed
in the company's filings from time to time with the Securities and Exchange
Commission. Many of these factors are beyond the control of the company.
Malan does not undertake to update these forward-looking statements.
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.
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Related links:
http://www.malanreit.com
CONTACT:
Elliott J. Broderick, Chief Financial Officer
of Malan Realty Investors, Inc., +1-248-644-7110, or Fred Nachman
of Marjan Communications Inc., +1-312-867-1771
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