BINGHAM FARMS, Mich., Oct. 26 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced its funds from operations for the third quarter of 2000.
For the quarter ended September 30, 2000, FFO was $2.5 million or 48 cents
per basic share. FFO for the quarter ended September 30, 1999 was also
$2.5 million or 48 cents per basic share. FFO on a diluted basis (assuming
conversion of convertible debt securities and inclusion of other common stock
equivalents) was $4.1 million or 44 cents per share in the third quarter of
2000 vs. $4.2 million or 44 cents per share in the third quarter of 1999.
Total revenues, (excluding net losses from sales of properties) consisting
primarily of rent and recoveries from tenants, were $10.3 million in the third
quarter of 2000 vs. $10.4 million in the third quarter of 1999.
For the nine months ended September 30, FFO was $3.4 million or 67 cents
per basic share vs. $7.4 million or $1.43 per basic share for the nine months
ended September 30, 1999. FFO on a diluted basis was $8.4 million or 91 cents
per share for the first nine months of 2000 vs. $12.5 million or $1.33 per
share for the first nine months of 1999. Total revenues (excluding net gains
on property sales of approximately $3.2 million) were $31.5 million for the
first three quarters of 2000 compared with $32.2 million (excluding net gains
on property sales of approximately $1.6 million) in the first three quarters
of 1999.
FFO for the nine months ended September 30, 2000, was affected by
nonrecurring expenses in the second and third quarters totaling approximately
$3.2 million. The expenses were associated with a proxy contest and the
resulting change in control. The company noted that although these expenses
are nonrecurring in nature, the October 1999 White Paper issued by the
National Association of Real Estate Investment Trusts (NAREIT) requires that
these items be included in the calculation of FFO. The White Paper excludes
from FFO calculations extraordinary items as defined under generally accepted
accounting principles, as well as gains and losses from sales of depreciable
operating property.
FFO for 1999 has been restated to reflect a previously announced change in
the company's method of accounting for contingent (percentage) rents applied
retroactively to January 1, 1999 pursuant to SEC Staff Accounting Bulletin No.
101 issued in December 1999.
"With the hiring of Jeff Lewis as CEO, management and the board continue
to review options for improving the portfolio and enhancing value for
shareholders," said Paul Gray, chairman of Malan's board of directors.
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 gross
leasable area.
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 .
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues
Minimum rent $7,297 $7,619 $22,213 $23,074
Percentage and overage
rents 259 260 943 727
Recoveries from tenants 2,542 2,434 7,730 8,154
Interest and other
income 218 91 584 250
Gain (loss) on sales
of real estate (12) (126) 3,158 1,625
Total Revenues 10,304 10,278 34,628 33,830
Expenses
Property operating
and maintenance 642 660 2,268 2,559
Other operating
expenses 470 430 1,302 1,273
Real estate taxes 1,977 1,948 6,150 6,265
General and
administrative 495 488 1,651 1,501
Proxy contest and
related change in
control costs (231) 3,170
Depreciation and
amortization 1,831 1,626 5,100 4,748
Total Operating
Expenses 5,184 5,152 19,641 16,346
Operating Income 5,120 5,126 14,987 17,484
Interest Expense 4,499 4,407 13,477 13,222
Income before
extraordinary item and
cumulative effect of
change in accounting
principle 621 719 1,510 4,262
Extraordinary Item:
Loss on extinguishments
of debt (93) (459)
Income before cumulative
effect of change in
accounting principle 621 719 1,417 3,803
Cumulative effect of
change in accounting
principle (522)
Net Income $621 $719 $1,417 $3,281
Earnings per share
before extraordinary
item and cumulative
effect of change in
accounting principle:
Basic $0.12 $0.14 $0.29 $0.83
Diluted $0.12 $0.14 $0.29 $0.82
Earnings per share
before cumulative
effect of change in
accounting principle:
Basic $0.12 $0.14 $0.27 $0.74
Diluted $0.12 $0.14 $0.27 $0.73
Earnings per share:
Basic $0.12 $0.14 $0.27 $0.64
Diluted $0.12 $0.14 $0.27 $0.63
Depreciation and
Amortization:
Depreciation of
buildings and
improvements $1,611 $1,534 $4,702 $4,511
Amortization of tenant
allowances and
improvements 182 51 276 127
Amortization of
leasing costs 36 40 118 106
(Gain) loss on sales of
real estate 12 126 (3,158) (1,625)
Loss on extinguishments
of debt 93 459
Cumulative effect of
change in accounting
principle 522
Funds From Operations,
Basic 2,462 2,470 3,448 7,381
Interest expense on
convertible securities 1,588 1,641 4,766 4,922
Amortization of deferred
financing costs on
convertible securities 67 71 207 214
Funds From Operations,
Diluted $4,117 $4,182 $8,421 $12,517
Funds From Operations
Per Share:
Basic $0.48 $0.48 $0.67 $1.43
Diluted $0.44 $0.44 $0.91 $1.33
Weighted average shares
outstanding:
Basic 5,174 5,171 5,173 5,170
Diluted 5,181 5,182 5,180 5,181
Diluted, assuming
conversion of
convertible
securities 9,283 9,413 9,282 9,412
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
Michael K. Kaline, President of Malan Realty
Investors, 248-644-7110; or Fred Nachman of Marjan Communications
Inc. for Malan Realty Investors, 312-867-1771
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