Search
 

Malan Feels Sting From Kmart Bankruptcy

BINGHAM FARMS, MI-The retail REIT believes it could see funds from operations reduced by $2.2 million year from the closure of up to 12 department stores. Kmarts lease 27 properties from Malan, accounting for 25% of base rents.

By Robert Carr | Updated on January 28, 2002

BINGHAM FARMS, MI-Malan Realty Investors, Inc. derives approximately 25% of its annualized base rents from Kmart Corp., which leases 27 properties from the REIT. The hit to funds from operations could be as high as $2.2 million a year, or $0.43 per share.

“While Kmart has not informed us of any stores it intends to close in our portfolio, we estimate Malan has a potential exposure on approximately six to 12 properties,” says Malan chief executive officer Jeff Lewis. “The likely scenario is that of these six to 12 properties, Kmart may reject the leases on some of these properties while closing stores and subleasing the space on the others.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.