Exhibit 99
NEWS RELEASE
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[NEWHALL LAND LOGO] THE NEWHALL LAND AND FARMING COMPANY
23823 Valencia Blvd. Valencia, CA. 91355 (661)255-4000
FOR IMMEDIATE RELEASE Contact: Marcia Ward
The Newhall Land and
Farming Company
(661) 255-4445
Fred Mickaelian, Jr.
Mickaelian Associates
(323) 268-1152
PROSPECTIVE BUYER OF REGIONAL SHOPPING CENTER
TERMINATES DUE DILIGENCE WORK
COMPLETION OF UNIT REPURCHASE PROGRAM MAY BE DELAYED
Valencia, California, August 28, 2000 - The Newhall Land and Farming
Company (NYSE, PSE/NHL) today announced that the prospective buyer for its
regional shopping center has terminated its due diligence work due to the
Chapter 11 bankruptcy recently announced by Edwards Theaters Circuit, Inc.
Edwards has two theater complexes totaling 21 screens and an IMAX 3D theatre in
the Valencia Town Center Regional Mall and the Valencia Entertainment Center.
For the first six months of this year, rental income from Edwards represented
approximately 16 percent of the Mall and Entertainment Center's combined total
income. Edwards is current on all obligations due Valencia Town Center. At this
time, Newhall Land does not know if the theater leases will be affected by the
reorganization. The original 10-screen theater opened shortly after the shopping
center in 1992 but recently has been remodeled to include stadium seating and
other up-to-date improvements. The IMAX 3D theatre and 11 additional screens
opened in the summer of 1999 and already include state-of-the art amenities.
Thomas L. Lee, chairman and chief executive officer, said, "We are
disappointed that the sale of this property has been affected by the recent
bankruptcy filing by Edwards Theaters. The Edwards facilities at Valencia Town
Center are state-of-the art and more viable than many of its other locations.
They are located in a premier shopping area in the heart of Valencia, which is a
strong and growing market. We will actively continue to pursue interested
buyers; however, the likelihood of closing a sale by year-end now is doubtful.
-more-
"The regional shopping center is one of 11 properties earmarked for
sale to finance the Company's unit repurchase program. As this property
represents a significant portion of the funds needed, we have reduced the pace
of unit repurchases at this time. Of the 6,384,446 units authorized in September
1999, a total of 1,754,794 units, 27.5 percent of the program, remains to be
purchased. Completion of the unit repurchase program is dependent upon the
closing of escrows on land sales in the business plan as well as the properties
identified in the asset sale program. Consequently, completion of the repurchase
program is likely to be delayed into next year.
"Two properties in the asset sale program, Castaic Shopping Center and
Plaza del Rancho, closed escrow in the second quarter for $18.8 million. The
Company is in discussions with a potential buyer for four office buildings in
the program in Valencia Town Center. These include the Company's three-story
office building on Town Center Drive, the six-story Princess Cruises building
and two additional buildings under construction for Princess Cruises. Based on
the status of current discussions with a prospective buyer of the office
buildings, we expect the closing to occur in the fourth quarter. Offers also are
being received and reviewed on the remaining properties to be sold."
Newhall Land is a developer of new towns and master-planned communities
in north Los Angeles County. Its primary activity is building the new town of
Valencia, California. Newhall Ranch, its next new town, and Valencia together
form one of the nation's most valuable landholdings. They are located on the
Company's 36,000 acres, 30 miles north of downtown Los Angeles.
The Company maintains a web site at http://www.newhall.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995
The forward-looking statements made in this release are based on
present trends the Company is experiencing. Also, Newhall Land's success in
obtaining entitlements, governmental and environmental approvals, including
litigation relating to these approvals, timing and ability to close escrows due
to market and other conditions, and marketplace acceptance of its business
strategies are factors that could affect results. The forward-looking statements
may involve the known risks described in the Company's Form 10-K, and unknown
risks, uncertainties and other factors that may cause the Company's actual
results and performance in future periods to be materially different from any
future results or performance suggested by the forward-looking statements in
this release. The Company expressly disclaims any obligations to update or
revise any forward-looking statements found herein to reflect any change in
Company expectations or results or any change in events.
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