BINGHAM FARMS, Mich., May 14 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced that for the first quarter ended March 31, 2003, its
net assets in liquidation increased by $1.5 million to $27.9 million.
As a result of the approval of a plan of complete liquidation by its
shareholders, the company 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, Malan no longer reports net income or funds from
operations.
The increase in net assets for the quarter was primarily attributed to
operating income of approximately $1.7 million for the quarter, offset by an
increase in reserves for estimated liquidation costs of approximately
$200,000.
Malan also announced that it has closed on the sales of its properties in
Forestville, Maryland, and Springfield, Missouri, for $2.9 million and
$425,000, respectively. The Forestville property was an 84,000 square-foot
former Kmart building. The Springfield property is an 8,000 square-foot strip
center adjacent to the Kmart store owned by the Malan. The company said that
Kmart has exercised its right of first refusal to purchase its building in
Springfield for $2.56 million, and the sale is expected to close within the
next thirty days.
Malan also announced that it had entered into contracts for the sale of
eleven properties with 1.28 million square feet of gross leasable area for a
total price of $45.6 million. The properties are located in Fairview Heights,
Franklin Park, Melrose Park, North Aurora and Rockford, Illinois; Columbus,
Indiana; Lawrence, Kansas; Farmington Hills, Michigan; Cape Girardeau,
Missouri; and Marshfield and Oshkosh, Wisconsin. The company also has
executed letters of intent for 26 additional properties at a total price of
$98.3 million.
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 46 properties located in eight states that contains an
aggregate of approximately 4.3 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 disproportionate effect of changes in proceeds
from property sales on liquidating distributions due to the company's capital
structure, the cost of litigation in which the company is involved,
bankruptcies and other financial difficulties of tenants, 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, +1-248-644-7110, or Fred Nachman of
Marjan Communications Inc. for Malan Realty Investors,
+1-312-867-1771
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