Malan Announces 2Q 2000 Results

Malan Realty Investors Inc., a REIT, has announced a deficit in total funds from operations in the second quarter of 2000. The company previously announced it would incur nonrecurring expenses in the quarter associated with a recent proxy contest and the resulting change in control.

For the quarter ending June 30, 2000, Malan incurred a deficit of $1.6 million or 31¢ per basic share. In June 1999, the company earned $2.6 million or 50¢ per basic share for the quarter ended June 30, 1999.

Total revenues (excluding a gain on the sale of property of about $3.2 million), consisting primarily of rent and recoveries from tenants, were $10.1 million in second quarter 2000. That compares to revenues at $10.8 million in the second quarter of 1999.

Included in the FFO for the second quarter of 2000 were nonrecurring expenses totaling approximately $3.4 million. This included about $775,000 in expenses for the proxy contest and $2.6 million incurred for lump-sum payments and accrued future health insurance benefits as part of change of control agreements with the company’s three executive officers.

“The quarter’s results, given the expenses taken for a situation that is thankfully behind us, are not indicative of our potential going forward,” asserts Paul Gray, chairman.

Malan 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 nine states that contains an aggregate of approximately 5.9 million sf.