BINGHAM FARMS, Mich., May 9 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced operating results for the first quarter of 2002.
For the quarter ended March 31, 2002, funds from operations (FFO) was
$1.7 million or 34 cents per share vs. $2.0 million or 38 cents per share for
the quarter ended March 31, 2001. Cash available for distribution (CAD) for
the quarter ended March 31, 2002 was $1.9 million or 38 cents per share
compared with $2.1 million or 40 cents per share for the quarter ended March
31, 2001. Total revenues, consisting primarily of rent and recoveries from
tenants, were $10.0 million in the first quarter of 2002 vs. $10.6 million in
the first quarter of 2001.
On March 19, 2002, Malan announced that its board of directors voted to
recommend a plan of liquidation to the company's shareholders. The proposed
plan contemplates the sale of all the company's properties and other assets
and is subject to shareholder approval at the annual meeting of shareholders
and agreements from some of the company's lenders
"We will continue to closely examine any alternative strategies, including
offers for the sale of the entire company or a substantial part of the
outstanding stock of the company," said Jeffrey Lewis, president and chief
executive officer of Malan Realty Investors. "However, the board believes
that liquidation remains the proper plan of action to realize shareholder
value at this time."
"Our property sales efforts consistent with our previously announced
strategic plan are progressing well," Lewis added. "We currently have five
properties, including Bricktown Square in Chicago, under contract with
proceeds totaling more than $55 million. We anticipate closing on several of
these contracts within the next 30 to 60 days." Proceeds of the sales are
expected to be utilized to pay down the company's outstanding debt
obligations.
The company also recorded an additional impairment of real estate on
Bricktown Square during the first quarter in accordance with Statement of
Financial Accounting Standard 144. The impairment writedown is the result of
the expected net realizable value of the property as reflected by the sales
contract.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 58 properties located in nine states that contains an aggregate
of approximately 5.5 million square feet of gross leasable area.
Safe Harbor Statement: This news release contains 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, the impact of market conditions on the sales prices for
the company's 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, 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 .
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
March 31,
2002 2001
Revenues
Minimum rent $6,969 $7,172
Percentage and overage rents 312 413
Recoveries from tenants 2,714 2,915
Interest and other income 34 69
Total Revenues 10,029 10,569
Expenses
Property operating and maintenance 920 1,150
Other operating expenses 419 375
Real estate taxes 2,019 2,055
General and administrative 852 675
Depreciation and amortization 1,591 1,671
Impairment of real estate 1,460
Total Operating Expenses 7,261 5,926
Operating Income 2,768 4,643
Interest Expense 4,064 4,319
Income (loss) before cumulative
effect of change in accounting principle (1,296) 324
Cumulative effect of change in
accounting principle (450)
Net Loss ($1,296) ($126)
Earnings (loss) per share before
cumulative effect of change
in accounting principle:
Basic and diluted ($0.25) $0.06
Loss per share:
Basic and diluted ($0.25) ($0.02)
Depreciation and Amortization:
Depreciation of buildings and improvements $1,413 $1,518
Amortization of tenant allowances
and improvements 118 108
Amortization of leasing costs 51 38
Impairment of real estate 1,460
Cumulative effect of change in
accounting principle 450
Funds From Operations, Basic and Diluted 1,746 1,988
Funds From Operations Per Share:
Basic and Diluted $0.34 $0.38
Weighted average shares outstanding:
Basic and diluted 5,121 5,165
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. for Malan, +1-312-867-1771
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