The decrease in the fourth quarter of 2003 was primarily attributable to an increase in the costs associated with the liquidation, the company says. In its year-end statement, the company also said it sold a Kansas City property for $3.4 million to Kmart Corp. The 104,440-sf property is located at 71000 NW Prairie View Road.
Malan closed on the sales of seven properties during the fourth quarter and three so far in the first quarter of 2004 totaling $9.2 million, leaving it with 18 operating properties under contract.
"We made excellent progress toward liquidation of the company in 2003, which also allowed us to reduce debt significantly," says Malan president and chief executive officer Jeffrey Lewis. "The portfolio has been reduced by more than half in terms of gross leasable area and by 43% 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. Malan says 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 has been trading in the $5 range for most of the past three months.
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