Will be Impacted by Proxy-Related Expenses; Completes Sale of a Shopping
Center in Suburban St. Louis
BINGHAM FARMS, Mich., June 30 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced that it expects net income and funds from operations (FFO) for the
second quarter ending June 30, 2000 and the year ending December 31, 2000 will
be negatively impacted by approximately $3.4 million. The decrease is due to
expenses incurred in the recent proxy contest and from the resulting change in
control.
The company said that although these costs are clearly nonrecurring in
nature, the new definition of FFO under the October 1999 White Paper issued by
the National Association of Real Estate Investment Trusts (NAREIT) no longer
permits exclusion of these types of items from the calculation of FFO.
Malan also announced it has completed the sale of a shopping center in
Manchester, Missouri, a suburb of St. Louis. Net proceeds to the company,
after payment of debt and transaction fees, will be approximately
$5.0 million. The gain on the sale of the property will add approximately
$3.1 million to net income in the second quarter of 2000 but will have no
effect on FFO as gains from sales of depreciable operating property are
specifically excluded from the calculation of FFO.
The company is considering several options for the use of the proceeds,
including buying back common stock and subordinated debentures and other
corporate uses.
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 64 properties located in 9 states
that contains an aggregate of approximately 5.9 million square feet of GLA.
Safe Harbor Statement: Certain statements in this release regarding
anticipated operating results are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Although the
company believes the statements and projections are based upon reasonable
assumptions, actual results may differ from those projected. Key factors that
could cause actual results to differ materially include economic downturns,
successful and timely completion of acquisitions, renovations and development
programs, leasing activities and other risks associated with the commercial
real estate business, and as detailed in the company's filings from time to
time with the Securities and Exchange Commission.
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:
Michael K. Kaline, Vice President of Malan
Realty, 248-644-7110; or Fred Nachman of Marjan Communications
Inc., 312-867-1771
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