BINGHAM FARMS, Mich., Dec. 18 /PRNewswire/ -- The board of directors of
Malan Realty Investors, Inc. (NYSE: MAL), a self-administered real estate
investment trust (REIT), today announced it has further refined the strategic
direction of the company originally announced earlier this year.
Recognizing the substantial debt maturities facing the company, Malan's
primary focus will be on retiring debt through the sale and refinancing of
currently owned properties, the board said. The company intends to use any
net proceeds from property sales and refinancing activities primarily for the
retirement of debt maturing during the next two and one-half years.
"While we expect to sell properties in relatively small portfolio
groupings, Malan will consider larger transactions, including the sale of all
properties or the entire company if opportunities are presented that we
believe are in the interest of the shareholders," said Jeffrey Lewis, chief
executive officer of Malan Realty Investors.
The plan also calls for a cessation of new investment in real estate,
other than reinvestment and redevelopment of properties already owned by the
company, until the property sales and refinancing activities are completed.
Further, Malan may have limited ability to repurchase its common stock during
this period.
The amount of cash Malan will be able to pay out each quarter could
increase or decrease as a result of these sales and refinancing activities.
As such, some component of future distributions could include return of
capital and capital gains from property sales. The board reviews cash
available for distribution and the dividend policy at its regular quarterly
meetings.
As part of management's continuing efforts to reorganize and restructure
the assets and obligations of the company, the board approved a settlement
agreement with its former joint venture partner in Farmington Hills, Michigan.
"Resolving this matter was critical to enabling the company to market our
Farmington Hills property without the encumbrance of a lawsuit," said Lewis.
"We exited the litigation because we have serious indications of interest in
the property, and we wanted to clear the path for constructive and
forward-looking discussions."
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 58 properties located in nine
states that contains an aggregate of approximately 5.5 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 .
SOURCE Malan Realty Investors
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Related links:
http://www.prnewswire.com
http://www.malanreit.com
CONTACT:
Michael K. Kaline, President 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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