BINGHAM FARMS, Mich., March 28 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced that net assets in liquidation decreased by
$5.2 million to $26.4 million during the fourth quarter ended December, 31,
2002.
As a result of the approval of a plan of complete liquidation by its
shareholders in August 2002, Malan Realty Investors adopted the liquidation
basis of accounting for all periods beginning after September 30, 2002. On
September 30, 2002, in accordance with the liquidation basis of accounting,
assets were adjusted to estimated net realizable value, and liabilities were
adjusted to estimated settlement amounts, including estimated costs associated
with carrying out the liquidation. Accordingly, the company no longer reports
net income or funds from operations.
The decrease in net assets for the fourth quarter of 2002 was primarily
attributable to the revaluation of the company's real estate assets, based on
current trends in the retail real estate market, resulting in a decrease of
$6.3 million. Malan also had operating income of $1.3 million for the
quarter, which partially offset the decline in net assets.
On March 19, 2003, Malan announced it has four properties under contract
and twelve properties under letters of intent for a total value of
$50.45 million. The company also said at that time it expects to pay a
distribution of approximately $3.3 million to shareholders during the fourth
quarter of 2003 based on 2002's taxable income.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. 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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