BINGHAM FARMS, Mich., July 29 /PRNewswire/ -- Citing the benefits from
acquired properties and the completion of several redevelopment projects
during the past 12 months, Malan Realty Investors, Inc. (NYSE: MAL), a
self-administered real estate investment trust (REIT), today announced total
funds from operations (FFO) increased 57 percent in the second quarter of 1999
over the second quarter of 1998.
For the quarter ended June 30, 1999, FFO was $2.7 million or 53 cents per
basic share vs. $1.7 million or 45 cents per basic share for the quarter
ended June 30, 1998. FFO on a diluted basis (assuming conversion of
convertible debt securities and inclusion of other common stock equivalents)
was $4.4 million or 47 cents per share for the second quarter of 1999 vs.
$3.7 million or 42 cents per share in the second quarter of 1998.
Total revenues, consisting primarily of rent and recoveries from tenants,
were $10.9 million in the second quarter of 1999, an increase of 17 percent
from $9.3 million in the second quarter of 1998.
For the six months ended June 30, 1999, FFO was $5.1 million or $1.00 per
basic share vs. $3.3 million or 87 cents per basic share for the quarter ended
June 30, 1998. FFO on a diluted basis was $8.6 million or 91 cents per share
for the first six months of 1999 vs. $7.3 million or 83 cents per share for
the first six months of 1998. Total revenues (excluding a nonrecurring gain
on the sale of a property of $1.8 million in the first quarter) rose 20
percent to $22.0 million for the first half of 1999 from $18.4 million in the
first half of 1998.
"Acquisitions and redevelopment activities are contributing to increased
FFO and enhancing the value of our portfolio," said President and Chief
Executive Officer Anthony S. Gramer. "We have also strengthened our financial
position, which will allow Malan to pursue our disciplined growth strategy of
acquiring properties that fit our property type and rate of return,
redeveloping and re-tenanting existing properties and selectively developing
new properties."
Malan said it is close to reaching an agreement on the remaining 15,000
square feet of retail space at Pine Ridge Plaza in Lawrence, Kansas. The
company plans to add Old Navy and OfficeMax to the shopping center in stores
of approximately 25,000 square feet and 23,500 square feet, respectively. An
International House of Pancakes is currently under construction on an outlot.
After this second phase of redevelopment is completed, Pine Ridge Plaza will
total more than 260,000 square feet of gross leasable area (GLA).
During the second quarter of 1999, Malan opened two new facilities.
Staples Inc, one of the nation's leading retailers of office supplies,
furniture and technology, opened its 25,000-square-foot store in Lincoln,
Illinois, in June. Ruby Tuesday, located adjacent to the new, 10-plex
Cinemark Theatre in the Chicago suburb of Melrose Park, was completed in
April. Malan is also in negotiations to lease the remaining 18,000 square
feet at its Arkansas City, Kansas, property, where an Ace Hardware store owned
by Westlake Hardware, Inc., the largest retail dealer and store owner in the
Ace Hardware cooperative, opened in late March.
"With the appointment of Fred Synk to lead our development activities,
Malan is studying a number of opportunities for new and existing properties,"
Gramer said. "We are working with the city of Farmington Hills on
redevelopment options for our Orchard Lake -- 14 Mile Road property, one of
the best retail sites in Oakland County, and proceeding with other plans for
enhancing the portfolio's value."
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 GLA.
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 June 30, Six Months June 30,
1999 1998 1999 1998
Revenues
Minimum rent $7,773 $6,704 $15,455 $12,987
Percentage and
overage rents 352 305 700 606
Recoveries from tenants 2,736 2,250 5,720 4,649
Interest and other income 72 53 159 124
Gain on sale of real estate -- -- 1,751 --
Total Revenues 10,933 9,312 23,785 18,366
Expenses
Property operating
and maintenance 729 581 1,899 1,317
Other operating expenses 416 396 784 743
Real estate taxes 2,159 1,908 4,317 3,865
General and administrative 527 403 1,072 792
Depreciation and
amortization 1,543 1,336 3,122 2,646
Total Operating
Expenses 5,374 4,624 11,194 9,363
Operating Income 5,559 4,688 12,591 9,003
Interest Expense 4,377 4,285 8,815 8,301
Net Income before
Extraordinary Item 1,182 403 3,776 702
Extraordinary Item:
Loss on extinguishment
of debt -- -- (459) --
Net Income $1,182 $403 $3,317 $702
Earnings per share before
Extraordinary Item:
Basic $0.23 $0.10 $0.73 $0.18
Diluted $0.23 $0.10 $0.73 $0.18
Extraordinary Item:
Basic -- -- ($0.09) --
Diluted -- -- ($0.09) --
Earnings per share:
Basic $0.23 $0.10 $0.64 $0.18
Diluted $0.23 $0.10 $0.64 $0.18
FFO Adjustments:
Depreciation and Amortization:
Depreciation of
buildings and
improvements $1,470 $1,277 $2,977 $2,528
Amortization of tenant
allowances and
improvements 38 29 76 57
Amortization of
leasing costs 33 28 66 57
Gain on sale of
real estate -- -- (1,751) --
Loss on extinguishment
of debt -- -- 459 --
Funds From Operations,
Basic 2,723 1,737 5,144 3,344
Interest expense on
convertible securities 1,640 1,884 3,281 3,781
Amortization of deferred
financing costs on
convertible securities 72 83 143 166
Funds From Operations,
Diluted $4,435 $3,704 $8,568 $7,291
Funds From Operations Per Share:
Basic $0.53 $0.45 $1.00 $0.87
Diluted $0.47 $0.42 $0.91 $0.83
Weighted average shares outstanding:
Basic 5,170 3,899 5,169 3,842
Diluted 5,184 3,940 5,184 3,882
Diluted, assuming conversion of
convertible securities 9,415 8,774 9,415 8,738
SOURCE Malan Realty Investors, Inc.
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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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