BIRMINGHAM, Mich., Jan. 30 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced financial results for the fourth quarter and full-year 1997.  The
company also announced it has signed a purchase agreement to acquire the
Westland Shopping Center in the Detroit suburb of Westland, Mich.
    For the quarter ended December 31, 1997, funds from operations (FFO) were
$2.0 million or 53 cents per outstanding share vs. $1.8 million or 52 cents
per share for the quarter ended December 31, 1996.  Malan calculates FFO
utilizing net income, excluding gains or losses from sales of property,
adjusted for certain non-cash items, primarily depreciation and amortization
(principally amortization of deferred financing costs included in interest
expense).
    Net income for the fourth quarter of 1997 was $266,000 or 7 cents per
weighted average share vs. $172,000 or 5 cents per weighted average share in
the year-ago quarter.  Total revenues, consisting primarily of rent and
recoveries from tenants, were $8.8 million in the fourth quarter of 1997 vs.
$8.5 million in the fourth quarter of 1996.
    For the year ended December 31, 1997, FFO was $7.2 million or $2.01 per
outstanding share vs. $7.1 million or $2.05 per outstanding share for the year
ended December 31, 1996.  Net income in 1997 was $543,000 or 15 cents per
weighted average share vs. $599,000 or 17 cents per weighted average share in
1996.  Total revenues for both years were $35.0 million.  The company also
announced that 100 percent of its 1997 distributions consisted of return of
capital for federal income tax purposes.
    "Solid progress on our redevelopment projects and the acquisition of a
top-quality property make us optimistic about growth in the future," said
President and Chief Executive Officer Anthony S. Gramer.  "We will continue to
pursue acquisitions that fit our strategic plan and to enhance the value of
our core portfolio through expansion, renovation and re-tenanting activities
that increase revenues and occupancy."
    The company said it will acquire the Westland Shopping Center for
$2.0 million in cash and the assumption of a ten-year, $5.9 million mortgage,
which carries an interest rate of 8.2 percent.  Proceeds for the acquisition
will come from the company's $25 million line of credit with Greenwich Capital
Markets, Inc.
    The 85,000 square-foot shopping center, which was completed in summer
1996, is anchored by Dick's Sporting Goods and Med Max and is located adjacent
to Westland Center regional mall.  Pittsburgh-based Dick's Sporting Goods is a
leading discount sporting goods and sportswear retailer, with more than 50
locations nationally.  Med Max, which is funded by Baxter International, is a
home health care superstore offering a wide range of consumer products and
pharmaceutical services.  Detroit-based Med Max has six locations in the
Detroit area.
    Site work and demolition have begun for the 150,000 square-foot expansion
of Pine Ridge Plaza in Lawrence, Kan.  Kmart will begin the expansion and
remodeling of its store in early spring.  Gramer said Malan expects to
announce tenants for the new retail space shortly, which upon completion this
fall will enlarge Pine Ridge Plaza to 255,000 square feet of gross leaseable
area.
    Work is also progressing on two new cinema complexes in the Chicago area,
which will be operated by Cinemark USA.  The 59,000 square-foot 17-plex
theater complex in North Aurora, Ill., is scheduled to open in time for the
July 4 holiday weekend, Gramer said.  Construction will begin shortly on the
58,000 square-foot 10-plex cinema complex in Melrose Park, Ill.  Completion is
scheduled for November 1998.  Both complexes will feature state-of-the-art
amenities including stadium seating.
    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, 1996.
    Malan Realty Investors, Inc. owns and operates a portfolio of 53 shopping
centers and free-standing stores, primarily in the Midwest.  The properties
represent approximately 5.7 million square feet of gross leaseable area.

                MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share amounts)
                                 (Unaudited)

                         Three Months December 31,  Twelve Months December 31,
                             1997       1996            1997       1996
    Revenues
    Minimum rent            $6,179     $5,990         $24,092    $23,836
    Percentage and overage
      rents                    277        355           1,177      1,164
    Recoveries from tenants  2,205      2,031           9,271      9,340
    Interest and other
      income                   120         99             443        623
       Total Revenues        8,781      8,475          34,983     34,963

    Expenses
    Property operating and
       maintenance -
       recoverable             580        585           2,867      2,769
    Other operating expenses   472        411           1,493      1,481
    Real estate taxes        2,006      1,763           7,891      7,715
    General and
      administrative           328        362           1,545      1,664
    Depreciation and
      amortization           1,270      1,240           5,068      4,920
       Total Operating
         Expenses            4,656      4,361          18,864     18,549

    Operating Income         4,125      4,114          16,119     16,414
    Interest Expense         3,859      3,942          15,576     15,815

    Net Income                $266       $172            $543       $599

    Net Income Per Weighted
      Average Share: *
       Basic                 $0.07      $0.05           $0.15      $0.17
       Diluted               $0.07      $0.05           $0.15      $0.17

    FFO Adjustments
    Depreciation and Amortization:
      Depreciation of buildings
        and improvements    $1,211     $1,198          $4,845     $4,766
      Amortization of tenant
        allowances and
        improvements            25         12              97         46
      Amortization of leasing
        costs                   27         22              96         56

    "White Paper" FFO        1,529      1,404           5,581      5,467

    Depreciation of furniture,
      equipment and leasehold
      improvements               7          8              30         52
    Amortization of deferred
      financing costs included
      in interest expense:
      Mortgages                343        295           1,271      1,228
      Convertible debt          86         88             349        353

    Funds From Operations    1,965      1,795           7,231      7,100

    Funds From Operations Per
      Outstanding Share      $0.53      $0.52           $2.01      $2.05

    Additional Information:
    Shares Outstanding at end
      of period              3,738      3,464           3,738      3,464
    Weighted Average Shares
      Outstanding: *
       Basic                 3,735      3,461           3,546      3,464
       Diluted               3,780      3,472           3,591      3,475
    Convertible debt interest,
      excluding amortization
      of deferred financing
      costs                 $1,937     $2,029          $7,916     $8,117

    * All prior periods have been restated to reflect the adoption of
Statement of Financial Accounting Standards ("SFAS") No. 128 "Earnings per
Share." SFAS No. 128 replaces the presentation of primary earnings per share
("EPS") and fully diluted EPS with a presentation of basic EPS and diluted
EPS, respectively.  Basic EPS excludes potential share dilution and is
computed based on the weighted average number of common shares outstanding for
the period; diluted EPS reflects the potential dilution of securities that
could share in the earnings but does not include shares issued upon conversion
of securities that would have an antidilutive effect on earnings per share.
Inclusion of such shares would result in weighted average shares outstanding
of 8,705 and 8,665 for the Three Months and 8,704 and 8,668 for the Twelve
Months Ended December 31, 1997 and 1996, respectively.

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