As of December 31, 1999, Gables had total indebtedness of $755,485, cash and cash equivalents of $7,963, and principal escrow deposits reflected in restricted cash of $2,992. Gables’ indebtedness has an average of 5.2 years to maturity at December 31, 1999. The aggregate maturities of notes payable at December 31, 1999 are as follows:

Gables’ dividends through the fourth quarter of 1999 have been paid from cash provided by operating activities. Gables anticipates that dividends will continue to be paid on a quarterly basis from cash provided by operating activities.

Gables has met and expects to continue to meet its short-term liquidity requirements generally through net cash provided by operations. Gables’ net cash provided by operations has been adequate and Gables believes that it will continue to be adequate to meet both operating requirements and payment of dividends in accordance with REIT requirements. The budgeted expenditures for improvements and renovations to the communities, in addition to monthly principal amortization payments, are also expected to be funded from net cash provided by operations. Gables anticipates construction and development activities and land purchases will be initially funded primarily through borrowings under its credit facilities described below.

Gables expects to meet certain of its long-term liquidity requirements, such as scheduled debt maturities, repayment of short-term financing of construction and development activities and possible property acquisitions, through long-term secured and unsecured borrowings, the issuance of debt securities or equity securities, private equity investments in the form of joint ventures, or through the disposition of assets which, in manage-ment’s evaluation, may no longer meet Gables’ investment requirements.

$225 Million Credit Facility

Gables has a $225 million unsecured revolving credit facility that is provided by a consortium of banks. The facility currently has a maturity date of May 2002 with two one-year extension options. Borrowings under the facility currently bear interest at Gables’ option of LIBOR plus 0.95% or prime minus 0.25%. Such scheduled interest rates may be adjusted up or down based on changes in Gables’ senior unsecured credit ratings. Gables may also enter into competitive bid loans with participating banks for up to $112.5 million at rates below the scheduled rates. In addition, there is an annual facility fee equal to 0.15% of the $225 million commitment. Gables’ availability under the facility is based on the value of Gables’ unencumbered real estate assets as compared to the amount of Gables’ unsecured indebtedness. As of December 31, 1999, Gables had $44.0 million in borrowings outstanding under the facility and, therefore, had $181.0 million of remaining capacity on the $225 million commitment.

$25 Million Credit Facility

Gables has a $25 million unsecured revolving credit facility with a bank that currently bears interest at LIBOR plus 0.95%. Gables expects to exercise one of its unlimited one-year extension options prior to the facility’s current maturity in October 2000. Gables had no borrowings outstanding under this facility at December 31, 1999.

$25 Million Borrowing Facility

Gables has a $25 million unsecured borrowing facility with a bank. The interest rate and maturity date related to each draw on this facility is agreed to between Gables and the bank prior to each draw. Gables expects the facility, which currently matures in April 2000, to be renewed for an additional one-year term at maturity. At December 31, 1999, Gables had $24.9 million in borrowings outstanding under this facility at an interest rate of 6.0%.