Finalizing Letters of Intent for Second Phase of Lawrence, Kansas Expansion
BINGHAM FARMS, Mich., April 29 /PRNewswire/ -- Malan Realty Investors,
Inc. (NYSE: MAL), a self-administered real estate investment trust (REIT),
today announced total funds from operations (FFO) increased 51 percent in the
first quarter of 1999 over the first quarter of 1998. The company also said
it will begin the second phase of redevelopment at Pine Ridge Plaza in
Lawrence, Kansas, after finalizing letters of intent with Old Navy and
OfficeMax for 48,500 square feet of new space.
For the quarter ended March 31, 1999, FFO was $2.4 million or 47 cents per
basic share vs. $1.6 million or 42 cents per share for the quarter ended March
31, 1998. FFO on a diluted basis (assuming conversion of convertible debt
securities and inclusion of other common stock equivalents) was $4.1 million
or 44 cents per share for the first quarter of 1999 vs. $3.6 million or
41 cents per share in the first quarter of 1998.
Total revenues (excluding a nonrecurring gain on the sale of a property),
consisting primarily of rent and recoveries from tenants, were $11.1 million
in the first quarter of 1999, an increase of 23 percent from $9.1 million in
the first quarter of 1998.
"Our disciplined strategy combining acquisitions and redevelopment
continues to result in higher FFO, as we benefit from new properties coming on
line," said President and Chief Executive Officer Anthony S. Gramer. "We are
very pleased to kick off phase two of the Pine Ridge Plaza expansion with
these fine retailers, which will further enhance our portfolio's value."
Malan announced that upon executing lease agreements with Old Navy and
OfficeMax, it will begin constructing two buildings of approximately 25,000
square feet and 23,500 square feet, respectively, at Pine Ridge Plaza. In
addition, Malan has signed a letter of intent for an International House of
Pancakes to be built on an outlot. Last fall, Malan completed the expansion
of Pine Ridge Plaza to 197,000 square feet with the addition of Kohl's
Department Store and the remodeling and expansion of Kmart.
During the first quarter of 1999, Malan opened its second state-of-the-art
cinema complex in suburban Chicago and an Ace Hardware Store in Arkansas City,
Kansas. The 61,000 square-foot 10-plex Cinemark Theatre in Melrose Park is
operated by Cinemark USA, Inc., the nation's sixth largest theater operator.
The Ruby Tuesday restaurant under construction adjacent to the theater is
expected to open in late spring. The Ace Hardware store, owned by Westlake
Hardware, Inc., the largest retail dealer and store owner in the Ace Hardware
cooperative, occupies 22,000 square feet. Malan also said it is in
negotiations to lease the remaining 18,000 square feet at this property.
Staples Inc., one of the nation's leading retailers of office supplies,
furniture and technology, has a planned summer opening for its 25,000 square-
foot store in Lincoln, Illinois.
Malan said it has completed the sale of its only West Coast property, a
94,282 square-foot Kmart in Colma, California, for approximately $7.7 million.
Net proceeds of the sale will be used for general corporate purposes,
including working capital and payment of debt.
"We continue to explore redevelopment and acquisition opportunities that
will enhance shareholder value," Gramer said. "Malan possesses a solid
foundation, including a strengthened capital position, and strong fundamentals
that will help us achieve our long-term growth objectives."
Statements in this news release regarding future revenues or expenses may
be considered forward looking within the meaning of the Securities Exchange
Act of 1934. Such statements are subject to important factors that could
cause results to differ materially from those in the forward looking
statements, including the factors as detailed in the company's Annual Report
on Form 10-K for the year ended December 31, 1998.
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 66 properties located in 10 states
that contains an aggregate of approximately 6.2 million square feet of gross
leasable area. The company currently has 5.2 million common shares
outstanding.
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.
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Mar 31,
1999 1998
Revenues
Minimum rent $7,682 $6,283
Percentage and overage rents 348 301
Recoveries from tenants 2,984 2,399
Interest and other income 87 71
Gain on sale of real estate 1,751 --
Total Revenues 12,852 9,054
Expenses
Property operating and maintenance 1,170 736
Other operating expenses 368 347
Real estate taxes 2,158 1,957
General and administrative 545 389
Depreciation and amortization 1,579 1,310
Total Operating Expenses 5,820 4,739
Operating Income 7,032 4,315
Interest Expense 4,438 4,016
Net Income before
Extraordinary Item 2,594 299
Extraordinary Item:
Loss on extinguishment of debt (459) --
Net Income $2,135 $299
Earnings per share before
Extraordinary Item:
Basic and diluted $0.50 $0.08
Extraordinary Item:
Basic and diluted ($0.09) --
Earnings per share:
Basic and diluted $0.41 $0.08
FFO Adjustments:
Depreciation and Amortization:
Depreciation of buildings and
improvements $1,507 $1,251
Amortization of tenant allowances
and improvements 38 29
Amortization of leasing costs 33 28
Gain on sale of real estate (1,751) --
Loss on extinguishment of debt 459 --
Funds From Operations, Basic 2,421 1,607
Interest expense on convertible
securities 1,641 1,896
Amortization of deferred financing
costs on convertible securities 71 84
Funds From Operations, Diluted $4,133 $3,587
Funds From Operations Per Share:
Basic $0.47 $0.42
Diluted $0.44 $0.41
Weighted average shares outstanding:
Basic 5,169 3,784
Diluted 5,174 3,828
Diluted, assuming conversion of
convertible securities 9,405 8,705
SOURCE Malan Realty Investors, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/114165.html or fax,
800-758-5804, ext. 114165
CONTACT:
Michael K. Kaline, Vice President of Malan
Realty Investors, Inc., 248-644-7110; or Fred Nachman of
Corporate Technology Communications, Inc., 312-832-9300, ext.
202, for Malan Realty Investors, Inc.
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