Strategy for Growth

G & K Industries offers a unique opportunity for real estate professionals seeking to focus on the market in California. During our 50 plus year history, we have shown an ability to successfully adapt and remain very profitable during each of California's economic cycles. We are presently seeking to expand our capital resources to take advantage of the significant investment possibilities in the market place and not be constrained during the present growth period. Because G & K Industries possesses a unique combination of acquisition, development, property rehabilitation and management expertise, we are well-positioned to take advantage of entrepreneurial real estate opportunities throughout the country.

While G & K Industries is not restricted to an "acquisition oriented growth strategy," in the short term we plan to expand our California conventional multi-family housing portfolio primarily through the acquisition of existing properties. In addition, we are currently seeking and/or developing large single tenant industrial properties. G & K Industries is also focused on acquiring financially-troubled, well located buildings that can benefit from our managerial and financial expertise. Additionally, we continue to develop properties in economically strong neighborhoods, and transitioning formerly subsidized properties to the conventional rental market. G & K Industries has placed great effort in transitioning our well located subsidized housing to our conventional apartment portfolio. This allows us to reposition well performing assets to better enable us to earn higher returns without a drain on our equity. Key to our investment strategy concerning risk management is the preservation of capital while maximizing long-term returns. Our longer term emphasis is on the acquisition and development of new properties as the economy continues to strengthen. G & K Industries will maintain a conservative capital structure and continue its long-term hold strategy. G & K Industries' stability and success is due to:

50 plus years of real estate experience
Limited geographic scope primarily in California enables management to closely monitor individual apartment properties
Established relationships and development experience with state and local governments and decision makers
Property management knowledge and expertise
Historical strength of the California economy
Superb long tenured staff with many years of real estate experience

The operating strategy of G & K Industries is one that encourages entrepreneurship, strong professionalism, and civic activities enhanced by a strong team of senior executives. The management team will continue to be developed from within to ensure continuity. Senior management at G & K Industries has an average tenure of over ten years, providing a very stable work environment and a strong knowledge base. G & K Industries possesses a loyal and experienced employee base and excellent computer based information systems.