Malan (NYSE:MAL)
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Malan Realty Investors Announces Net Assets in Liquidation at
Year-End 2003; Sale of Kansas City, Missouri, Property
BINGHAM FARMS, Mich., March 31 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. , a self-administered realestate investment trust (REIT),
announced that net assets in liquidation for the fourth quarter ended December
31, 2003, decreased by $1.1 million from the third quarter ended September 30,
2003, to $27.9 million. Net assets in liquidation for the year ended December
31, 2002, were $26.4 million. The decrease in the fourth quarter of 2003 was
primarily attributable to an increase in the costs associated with the company
liquidation.
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.
"We made excellent progress towardliquidation of the company in 2003, which
also allowed us to reduce debt significantly," said Jeffrey Lewis, president and
chief executive officer of Malan Realty Investors. "The portfolio has been
reduced by more than half in terms of gross leasable area and by 43 percent in
the number of properties since this time last year."
For the fourth quarter of 2003, operating income, including income from
properties and interest expense on corporate and property specific debt, was
approximately $1.1 million. The estimated fair value on the remaining
properties held for sale increased $1.4 million, based on executed contracts for
sale and internal valuation analyses prepared by management.
Malan closed on the sales of seven properties during the quarter and three
additional properties and parcel of land subsequent to December 31, 2003, at
contract prices totaling $9.2 million. The company currently has 18 operating
properties under contract.
Malan continues to repurchase and retire its convertible subordinated
debentures. After the redemption of $5.0 million of its 9.5 percent Convertible
Subordinated Debentures due July 15, 2004, on April 14, 2004, the aggregate
principal balance of the Debentures will decline to $7.1 million.
The company alsoannounced the sale of Prairie View Plaza in Kansas City,
Missouri, to Kmart Corporation. The 104,440 square-foot property is located at
71000 NW Prairie View Road. Proceeds from the sale after expenses were $3.4
million.
Malan Realty Investors, Inc.owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 24 properties located in eight statesthat contains an
aggregate of approximately 1.9 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 planof liquidation and expenses incurred
during the liquidation period, changing market conditions affecting the sales
price of the company's properties, the disproportionate effect of changes in
proceeds from property sales on liquidating distributions due to the company's
capital structure, the cost of litigation in which the company is involved,
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 theseforward-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/ .
DATASOURCE: Malan Realty Investors, Inc.
CONTACT: John Roberson, Media Relations, +1-248-644-7110, or Fred
Nachman of Marjan Communications Inc., +1-312-867-1771, both for Malan Realty
Investors, Inc.
Web site: http://www.malanreit.com/