BINGHAM FARMS, Mich., Oct. 30 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced financial results for the third quarter of 2001.
For the quarter ended September 30, 2001, funds from operations (FFO) was
$1.1 million or 22 cents per share vs. $2.5 million or 48 cents per share for
the quarter ended September 30, 2000. Cash available for distribution (CAD)
for the quarter ended September 30, 2001 was $868,000 or 17 cents per share
compared with $2.0 million or 39 cents per share for the quarter ended
September 30, 2000. Total revenues (excluding gains and losses on property
sales), consisting primarily of rent and recoveries from tenants, were
$9.7 million in the third quarter of 2001 vs. $10.3 million in the third
quarter of 2000.
For the nine months ended September 30, 2001, FFO was $4.5 million or
88 cents per share vs. $3.4 million or 67 cents per share for the nine months
ended September 30, 2000. CAD for the nine months ended September 30, 2001
was $4.1 million or 80 cents per share compared with $2.8 million or 55 cents
per share for the nine months ended September 30, 2000. Total revenues were
$30.2 million for the first three quarters of 2001 compared with $31.5 million
in the comparable year-ago period. Total revenues exclude gains and losses on
property sales in both periods.
"Our strategic plan continues to call for selling non-core properties and
using the proceeds to pay down debt and repurchase stock and convertible
debentures," said Jeffrey Lewis, chief executive officer of Malan Realty
Investors. "We expect to meet our goal for divesting properties for 2001,
which will result in a stronger portfolio and more options for the coming
year."
Property Sales
Malan said it has reached agreements to sell a 55,550 square-foot property
in Great Bend, Kansas, and an outlot adjacent to its cinema complex in North
Aurora, Illinois. The company also said it expects to close on sales of
properties leased to Kmart in Milwaukee and Stevens Point, Wisconsin, and Cape
Girardeau, Missouri, during the fourth quarter. Net proceeds from the sales
are expected to be utilized to pay down debt and for general working capital
purposes. Year-to-date, Malan has sold four properties with net proceeds to
the company totaling approximately $10 million.
Debt Restructuring
Malan continues to work with Cohen Financial on restructuring its debt.
The current balance on the Greenwich Capital line of credit, approximately
$3.5 million, is expected to be paid by its maturity date of November 21,
2001. Malan is also studying various alternatives for refinancing of its
REMIC, which matures in August 2002, including additional sales of properties
in the portfolio. The outstanding balance on the REMIC is currently
$57.9 million.
Stock Repurchase Program
In October 2001, Malan repurchased 11,100 shares of its common stock at an
average price of $7.38 per share under a stock repurchase program authorized
by its board of directors. The company has purchased a total of 59,400 shares
since resumption of the program in August 2000. Additional share purchases
will be based on market conditions, the projected rate of return on the stock
compared with other investment opportunities and the availability of funds.
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 60 properties located in nine
states that contains an aggregate of approximately 5.6 million square feet of
gross leasable area.
Safe Harbor Statement: This news release contains 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 litigation costs, development risks such as unanticipated costs,
economic downturns, bankruptcies and other financial difficulties of tenants,
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. 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 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 Nine Months
Ended Ended
September 30, September 30,
2001 2000 2001 2000
Revenues
Minimum rent $6,929 $7,297 $21,268 $22,213
Percentage and overage rents 290 259 826 943
Recoveries from tenants 2,387 2,542 7,752 7,730
Interest and other income 119 218 323 584
Gain on sale of real estate 2,840 (12) 3,608 3,158
Total Revenues 12,565 10,304 33,777 34,628
Expenses
Property operating and maintenance 788 642 2,630 2,268
Other operating expenses 587 470 1,362 1,302
Real estate taxes 2,058 1,977 6,227 6,150
General and administrative 725 495 2,204 1,651
Proxy contest and related change in
control costs (231) 3,170
Depreciation and amortization 1,629 1,831 4,996 5,100
Impairment of real estate 228 3,819
Total Operating Expenses 6,015 5,184 21,238 19,641
Operating Income 6,550 5,120 12,539 14,987
Interest Expense 4,412 4,499 13,215 13,477
Income before extraordinary item and
cumulative change in
accounting principle 2,138 621 (676) 1,510
Extraordinary Item:
Loss on extinguishment of debt (93)
Income before extraordinary item and
cumulative change in
accounting principle 2,138 621 (676) 1,417
Cumulative effect of change in
accounting principle (450)
Net Income (Loss) $2,138 $621 ($1,126) $1,417
Earnings per share before
extraordinary item and
cumulative effect of change
in accounting principle
Basic and diluted $0.42 $0.12 ($0.13) $0.29
Earnings per share before
cumulative effect of change
in accounting principle
Basic and diluted $0.42 $0.12 ($0.13) $0.27
Earnings per share:
Basic and diluted $0.42 $0.12 ($0.22) $0.27
Depreciation and Amortization:
Depreciation of buildings and
improvements $1,451 $1,611 $4,497 $4,702
Amortization of tenant allowances
and improvements 125 182 354 276
Amortization of leasing costs 44 36 120 118
Gain on sale of real estate (2,840) 12 (3,608) (3,158)
Loss on extinguishment of debt 93
Impairment of real estate 228 3,819
Cumulative effect of change in
accounting principle 450
Funds From Operations, Basic 1,146 2,462 4,506 3,448
Interest expense on convertible
securities 1,589 1,588 4,767 4,766
Amortization of deferred financing
costs on convertible securities 69 67 207 207
Funds From Operations, Diluted $2,804 $4,117 $9,480 $8,421
Funds From Operations Per Share:
Basic $0.22 $0.48 $0.88 $0.67
Diluted $0.30 $0.44 $1.03 $0.91
Weighted average shares outstanding:
Basic 5,132 5,174 5,144 5,173
Diluted 5,132 5,181 5,144 5,180
Diluted, assuming conversion of
convertible securities 9,235 9,283 9,246 9,282
MALAN REALTY INVESTORS, INC. AND SUBSIDIARIES
ADDITIONAL INFORMATION
(in thousands, except for per square foot amounts and leases)
Three Months Nine Months
Ended Ended
September 30, September 30,
2001 2000 2001 2000
Summary of Capital Expenditures Total Total Total Total
Gross Leasable Area of Portfolio 5,604 5,924 5,604 5,924
- New tenants 6 9 19 20
Square footage 20 32 114 86
- Renewal tenants 4 14 61 31
Square footage 8 47 335 88
New Tenants:
- Tenant improvements and tenant
allowances $1 $277 $161 $440
Per square foot $0.35 $7.83 $1.70 $5.77
- Leasing commissions $387 $- $473 $125
Per square foot $8.55 $- $3.38 $2.08
Renewal Tenants
- Tenant improvements and
allowances $- $- $- $-
- Leasing commissions $- $- $- $-
Corporate / administrative items:
- Computer equipment $- $- $46 $-
Existing Properties
- Capital maintenance $240 $435 $476 $840
Per square foot $0.37 $0.37 $0.37 $0.27
- Gross leasable area 655 1,181 1,274 3,105
Development Properties
- Building expansions $- $- $2,049 $-
- Gross leasable area - - 58 -
Other Information
- Amortization of deferred
financing costs $345 $418 $1,034 $1,257
- Officer's compensation paid in
stock $- $- $70 $-
- Same store NOI $6,573 $7,067 $20,096 $21,117
- Leases signed 10 23 80 51
Square Footage 28 79 449 174
- Leases expiring 7 6 59 44
Square Footage 17 15 234 155
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
http://www.prnewswire.com/gh/cnoc/comp/114165.html
CONTACT:
Michael K. Kaline, President of Malan Realty
Investors, Inc., +1-248-644-7110, or Fred Nachman of Marjan
Communications Inc., +1-312-867-1771
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