BINGHAM FARMS, Mich., Aug. 13 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), announced that net assets in liquidation for the second quarter ended
June 30, 2004, increased by $2.7 million from the first quarter ended
March 31, 2004, to $30.1 million.
The estimated fair value on the remaining properties held for sale
increased approximately $1.7 million, based on a signed contract. Net
operating income from the properties was approximately $1.7 million during the
period.
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.
Malan closed on the sales of four properties during the quarter and one
additional property subsequent to June 30, 2004, at contract prices totaling
$17.3 million. The company currently has one operating property of its
remaining 19 properties under contract. During the quarter, Malan also
completed the redemption of its convertible subordinated debentures. The
aggregate principal balance of its 9.5 percent Convertible Subordinated
Debentures due July 15, 2004, at that time was $7.1 million.
"As announced, Malan plans to become a liquidating trust later this
month," said Jeffrey Lewis, president and chief executive officer of Malan
Realty Investors. "Regardless of the impending change in status of the
company, we expect to receive a fair price for each property in order to make
the largest possible distributions to our shareholders in the future."
Malan Realty Investors, Inc. is continuing to liquidate its assets and
currently expects that no later than August 27, 2004, any then remaining
assets and liabilities will be transferred to a liquidating trust. Each
shareholder of Malan will automatically become the holder of one unit of
beneficial interest in the trust for each share of Malan common stock, and all
outstanding shares of Malan common stock will automatically be deemed
cancelled. Malan Realty Investors has requested that the staff of the
Securities and Exchange Commission permit the trust to file abbreviated
reports with the SEC in the form in which the trust will report periodically
to its beneficiaries, in lieu of filing the periodic reports that would be
required to be filed with the SEC under Section 13 of the Securities Exchange
Act of 1934.
Subject to limited exceptions related to transfer by will, interstate
succession or operation of law, the units will not be transferable nor will a
unit holder have authority, opportunity or power to sell or in any other
manner dispose of any units. As a result, the beneficial interests in the
liquidating trust will not be listed on any securities exchange or quoted on
any automated quotation system of a registered securities association.
Shareholders who may need or wish liquidity with respect to their company
common stock before the liquidating trust makes liquidating distributions
should look into selling their shares while the common stock is still traded
on an established market.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 19 properties located in seven states that contains an aggregate
of approximately 1.2 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 the company's properties, the effect of changes in proceeds from
property sales on liquidating distributions due to the company's capital
structure, 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, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
John Roberson, Media Relations of Malan
Realty Investors, +1-248-644-7110, or Fred Nachman of Marjan
Communications Inc., +1-312-867-1771
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