Annual Report

THIS PAST YEAR was the most exciting and prosperous year for GCP to date. We made significant progress in 2017: achieved our stated goals of growing the portfolio, diversified into higher-growth markets, and maximized the value of our existing properties.

GCP acquired almost $120 million in new properties in 2017, investing in Atlanta, Charlotte and Central Florida. At the same time, occupancy ended the year over 97%, excluding the speculative space at the newly acquired Legacy Park West in Charlotte. The balance sheet is financially strong with a $200 million line of credit with Wells Fargo and a new $60 million fixed-rate, 10-year loan with MetLife. GCP is protected from large increases in interest rates through the purchase of forward-interest rate caps. Net asset values* (NAV) for the properties are at an all-time high resulting in a $1.49 value per unit of ownership. The dividend is a healthy $0.09 per unit, while funds available for distribution are closer to $0.10 per unit.

GCP Management Services (GCP’s property management arm) continues its growth as well, responsible for over 13 million square feet of office and industrial space. We opened a new management office in Atlanta after adding square footage to the GCP portfolio in the Atlanta and Charlotte areas. Additionally, we added personnel in Huntsville upon assuming the management of a large third-party office park. The Birmingham staff moved into new offices in the Historic Federal Reserve building downtown in October. We invite you to please stop by if you have not already done so.

We are excited to announce the well-deserved promotions of three leaders within GCP to the level of vice president: Stacey Wadsworth (Operations), Tim Fitzpatrick (Accounting) and Taylor Graham (Investments). All three are valued members of the management team, and we are pleased to promote from within and reward their talent and contributions to the company.

The industrial market is in a healthy state of equilibrium with new demand equaling new supply in most markets. Industrial is one of the most highly sought after property sectors, and the investment market has become increasingly competitive. We will continue to monitor the market and look for opportunities that will add value to GCP while maintaining our strategic plan and investment criteria.

Thank you for investing in GCP and for your continued confidence in our strategy.

Gardner Lee, SIOR, CPM