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As a result of this discipline, our balance sheet is stronger today than in recent history. Both debt and dividend coverage ratios improved through 1999. This trend should continue. While the recent upward movement in interest rates warrants our attention, our debt maturity schedule is such that exposure to this movement is minimal. With the purchase of a new home being the number-one reason our residents do not renew their leases, I have to admit I may be one of the few people in the country secretly wishing for higher mortgage rates.
March 17, 2000 |
With
our stock trading at a discount of almost 25% to consensus net
asset value, we have taken advantage of this arbitrage window
by selling assets and repurchasing stock. To date, we have bought
almost nine percent of our outstanding common shares. With our
focus on per share earnings growth and not absolute growth,
we expect more divestitures in the months ahead with proceeds
used to further reduce the number of outstanding common shares.
Ever cognizant of the value of our investment grade debt rating,
we will continue to use sale proceeds to reduce debt before
entering the equity market. 
Before
closing this letter, I would like to take this opportunity to
thank Marc Bromley for his years of dedication and service with
Gables Residential. Under Marc’s leadership, Gables established
itself as the preeminent high-end multifamily real estate company
operating in the Sun Belt. His management succession plan is directly
responsible for the changes that have transpired at Gables over
the past year. While we will miss his day-today interaction, we
are fortunate that Marc will remain involved as a member of our
Board of Trustees. Further, I need to offer my sincere thanks
and appreciation to all the Gables associates who contributed
to the year’s performance. A tremendous effort has been put forth
by the entire organization dealing with our many new strategic
initiatives. I am truly proud and grateful for that effort. Change
is never easy, but the organization has risen to the challenge.
Many thanks to our team and to our shareowners for their support.
