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SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
Filed by the registrant [X]
Filed by a party other than the registrant [ ]
Check the appropriate box:
[ ] Preliminary proxy statement [ ] Confidential, for Use of the
Commission Only (as permitted by
Rule 14a-6(e)(2))
[ ] Definitive proxy statement
[X] Definitive additional materials
[ ] Soliciting material pursuant to Rule 14a-11(c) or Rule 14a-12
MALAN REALTY
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(Name of Registrant as Specified in Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of filing fee (Check the appropriate box):
[X] No fee required.
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and
0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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[ ] Fee paid previously with preliminary materials.
- --------------------------------------------------------------------------------
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the form or schedule and the date of its filing.
(1) Amount previously paid:
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(2) Form, schedule or registration statement no.:
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(3) Filing party:
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(4) Date filed:
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BUSINESS PLAN
-- CORPORATE STRATEGY FOLLOWED BY MANAGEMENT & BOARD
TO CONSISTENTLY:
- INCREASE REVENUES AND FUNDS FROM OPERATION
- CONSISTENTLY PAY ATTRACTIVE DIVIDEND TO SHAREHOLDERS
- STRENGTHEN FINANCIAL POSITION OF THE COMPANY
- ENHANCE SHAREHOLDER VALUE
-- THE STRATEGY INCLUDES:
- REDEVELOPING AND EXPANDING EXISTING PROPERTIES
- RE-TENANTING TO DIVERSIFY TENANT MIX AND INCREASE RENTS
- SELECTIVELY ACQUIRING SHOPPING CENTERS WITH NATIONAL/REGIONAL
ANCHOR TENANTS
- REDEPLOYMENT OF ASSETS AND CAPITAL
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STRATEGY ACCOMPLISHMENTS
- 3 CONSECUTIVE YEARS OF RECORD REVENUES
- 3 CONSECUTIVE YEARS OF RECORD FUNDS FROM OPERATIONS
- 1999 TOTAL FFO INCREASED 26% - PER BASIC SHARE
INCREASED 10%
- 1998 TOTAL FFO INCREASED 45% - PER BASIC SHARE
INCREASED 15%
- 23 CONSECUTIVE DIVIDENDS AT ANNUALIZED RATE OF $1.70 PER SHARE
- CUMULATIVE RETURN TO SHAREHOLDERS HAS EXCEEDED THE NAREIT
EQUITY REIT TOTAL RETURN INDEX FOR THE LAST THREE
YEAR AND FIVE YEAR PERIOD.
- STOCK HAS CONSISTENTLY TRADED AT ONE OF THE HIGHEST FFO
MULTIPLES IN THE RETAIL REIT SECTOR AND THE INDUSTRY.
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STRATEGY ACCOMPLISHMENTS
[2 BAR CHART GRAPHS SHOWING YEARS HORIZONTAL, $ THOUSANDS VERTICAL]
<TABLE>
<CAPTION>
1997 1998 1999
<S> <C> <C> <C>
TOTAL FFO GRAPH 5,581 8,094 10.214
TOTAL REVENUES GRAPH 34,983 39,564 44,874
</TABLE>
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REAL ESTATE STRATEGY RESULTS
-- RECENT REDEVELOPMENT PROJECTS
- PINE RIDGE PLAZA, LAWRENCE, KANSAS
- EXPANDING FROM 97,000 TO 260,000 SQUARE FEET
- ADDED KOHL'S DEPARTMENT STORE
- CINEMARK THEATER, MELROSE PARK, ILLINOIS
- 10-PLEX THEATER IN SUBURBAN CHICAGO
- FORMER BUILDERS SQUARE STORE
- RUBY TUESDAY RESTAURANT OPENED ADJACENT TO THEATER
- CINEMARK THEATER, NORTH AURORA, ILLINOIS
- 17-PLEX THEATER IN SUBURBAN CHICAGO
- FORMER KMART STORE
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RE-TENANTING RESULTS
-- RECENT RE-TENANTING ACTIVITIES
- LINCOLN, ILLINOIS
- STAPLES, INC. AND STAGE STORES, INC. ADDED IN FORMER
KMART STORE
- TOPEKA, KANSAS
- HARBOR FREIGHT AND SAV-A-LOT GROCERY ADDED IN FORMER
HARDWARE STORE
- ARKANSAS CITY, KANSAS
- WESTLAKE ACE HARDWARE ADDED IN FORMER KMART STORE
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ACQUISITION RESULTS
-- SUCCESSFUL ACQUISITIONS
- 13 COMMUNITY SHOPPING CENTERS
- BASED IN MIDWEST
- CREATED LEASING AND OPERATIONAL SYNERGIES
- DIVERSIFIED TENANT BASE
- THE SHOPS AT FAIRLANE MEADOWS, DEARBORN, MICHIGAN
- TARGET, MERVYN'S, BEST BUY, KIDS 'R US
- PREMIER SUBURBAN DETROIT RETAIL PROPERTY
- CLINTON POINTE SHOPPING CENTER, CLINTON TWNSHP., MICHIGAN
- TARGET, OFFICE MAX, SPORTS AUTHORITY
- 5 COMMUNITY SHOPPING CENTERS
- ALL ANCHORED BY WAL-MART
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- BASED IN MIDWEST
FINANCIAL STRENGTH
-- CONSERVATIVE CAPITAL STRATEGY
- OBTAINED LONG-TERM FIXED RATE MORTGAGES
- REPURCHASED AND RETIRED $11.8 MILLION AGGREGATE PRINCIPLE OF
9 1/2% CONVERTIBLE SUBORDINATED DEBENTURES AT DISCOUNT TO
FACE VALUE
- RAISED $21.5 MILLION OF EQUITY FROM ISSUANCE OF 1.3 MILLION
SHARES IN 1998
- SALE OF NON-CORE ASSETS AND REDEPLOYMENT OF CAPITAL
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THE FUTURE
-- CONTINUE WITH SUCCESSFUL BUSINESS PLAN
- REIT MARKET WILL NOT BE OUT OF FAVOR FOREVER AND MALAN
IS POISED FOR THE FUTURE
- CONTINUE WITH EXECUTION OF SUCCESSFUL STRATEGIES
- ENGAGEMENT OF PRUDENTIAL SECURITIES TO FURTHER POSITION
THE COMPANY FOR ENHANCED SHAREHOLDER VALUE
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PRUDENTIAL SECURITIES
-- ENGAGED TO ASSIST IN EVALUATING STRATEGIC ALTERNATIVES
- PRUDENTIAL SECURITIES ENGAGED AS FINANCIAL ADVISOR IN
THIRD QUARTER OF 1999
- ADVISOR TO THE BOARD IN ITS ONGOING EFFORT TO
MAXIMIZE SHAREHOLDER VALUE
- COMPLETED A REVIEW OF POSSIBLE STRATEGIC ALTERNATIVES
IN THE FIRST QUARTER OF 2000
- NOW EXPLORING ALTERNATIVE TRANSACTIONS TO MAXIMIZE
SHAREHOLDER VALUE SUCH AS A:
- MERGER WITH ANOTHER PUBLIC REIT
- STRATEGIC ACQUISITION
- STRATEGIC INVESTOR
- SALE OF THE COMPANY
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KENSINGTON'S PROXY
- KENSINGTON LOOKING TO CONTROL BOARD
- KENSINGTON PROPOSES NO BUSINESS PLAN
- KENSINGTON NOMINESS HAVE NO OPERATING EXPERIENCE
IN COMPANY'S BUSINESS
- KENSINGTON BOSS KRAMER ACKNOWLEDGES REIT INDUSTRY
DOLDRUMS
- BOARD OFFERED KENSINGTON ONE SEAT BUT WAS REJECTED
- KENSINGTON WANTS NOTHING LESS THAN CONTROL
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WHAT SHOULD SHAREHOLDERS DO ...
THROW AWAY
KENSINGTON GOLD CARD
VOTE MALAN
WHITE PROXY
TODAY
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