BINGHAM FARMS, Mich., Aug. 12 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced that for the second quarter ended June 30, 2003, its
net assets in liquidation increased by $738,000 to $28.6 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 attributable to a
decrease in the reserve for estimated liquidation costs of $1.1 million, due
to payments of and estimated decreases in future costs of carrying out the
liquidation. Operating income for the quarter of $10,000 consisted of income
from properties and a $1.1 million decrease in estimated environmental
investigation and remediation costs, based on revised information relating to
cleanup costs at certain properties, and was offset by a charge of $1.4
million as the result of an unfavorable court decision in litigation brought
by the company's former president and CEO. The company is currently appealing
the decision.
Malan also announced that it closed on the sales of four properties during
the quarter and four others subsequent to June 30, 2003, at contract prices
totaling $30.3 million. The company currently has nine operating properties
and one vacant land parcel under contract for $61.2 million, one property
under a letter of intent for $2.1 million and one additional property under an
option for $1.0 million. Certain letters of intent announced previously were
terminated without proceeding to contract.
The company also announced that subsequent to the end of the second
quarter, it retired its $27 million Secured Convertible Notes, paid off its
loan with JDI Loans, extended its loan with Salomon Brothers Realty Corp for
twelve months and was negotiating an extension of its loan with Cohen
Financial. The company also entered into a two-year, $20.5 million loan with
UBS Warburg Real Estate Investments, collateralized by Bricktown Square in
Chicago. Proceeds of the loan were utilized to retire the Convertible Notes.
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 39 properties located in eight states that contains an
aggregate of approximately 3.5 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 in the Company News section on the PR
Newswire Web site at http://www.prnewswire.com .
SOURCE Malan Realty Investors
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Related links:
http://www.malanreit.com
Company News On-Call:
http://www.prnewswire.com/comp/114165.html
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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