SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant |X|
Filed by a Party other than the Registrant |_|
Check the appropriate box:
|_| Preliminary Proxy Statement
|_| Confidential, for Use of the Commission Only
(as permitted by Rule 14a-6(e)(2)
|X| Definitive Proxy Statement
|_| Definitive Additional Materials
|_| Soliciting Material Pursuant to ss.240.14a-11(c) or ss.240.14a-12
GABLES RESIDENTIAL TRUST
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|X| No Fee Required
|_| Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
1. Title of each class of securities to which transaction applies:
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2. Aggregate number of securities to which transaction applies:
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3. Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (set forth the amount on which
the filing fee is calculated and state how it was determined):
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4. Proposed maximum aggregate value transaction:
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5. Total fee paid:
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|_| Fee paid previously with preliminary materials.
|_| Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration number, or
the Form or Schedule and the date of its filing.
1. Amount previously paid:
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2. Form, Schedule or Registration Statement No.:
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3. Filing Party:
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4. Date Filed:
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<p><font size="3">March 31, 2000</font></p>
<p> </p>
<p><font size="3">Dear Shareholder:</font></p>
<p><font size="3"> You are cordially invited to attend
the annual meeting of shareholders of Gables Residential Trust to be held Tuesday,
May 16, 2000 at 9:00 a.m. local time. The meeting will take place at The Vinings
Club, located in Overlook III, the office building of Gables' headquarters at
2859 Paces Ferry Road, Atlanta, Georgia.</font></p>
<p><font size="3"> The attached proxy statement,
with formal notice of the meeting on the first page, describes the matters expected
to be acted upon at the meeting. We urge you to review these materials carefully
and to use this opportunity to take part in the company's affairs by voting
on the matters described in the proxy statement. At the meeting, we will also
review Gables' operations, report on 1999 financial results and discuss Gables'
plans for the future. Our trustees and management team will be available to
answer any questions you may have. We hope that you will be able to attend.</font></p>
<p><font size="3"> Your vote is important to us.
Whether you plan to attend the meeting or not, please either complete the enclosed
proxy card and return it as promptly as possible, or vote via the internet or
by calling the toll-free telephone number. The enclosed proxy card contains
instructions regarding all three methods of voting. If you attend the meeting,
you may continue to have your shares voted as instructed in the proxy or you
may withdraw your proxy at the meeting and vote your shares in person.</font></p>
<p><font size="3"> Thank you for your continued support
and interest in Gables.</font></p>
<p><font size="3">Sincerely,</font></p>
<p><font size="3">/s/ Chris D. Wheeler<br>
<p><font size="3">Chris D. Wheeler<br>
</font><font size="3">Chairman of the Board and<br>
</font><font size="3">Chief Executive Officer</font></p>
<p align="center"><b><font size="3">GABLES RESIDENTIAL TRUST</font></b></p>
<p align="CENTER"><b><font size="3">2859 Paces Ferry Road<br>
</font></b><b><font size="3">Overlook III, Suite 1450<br>
</font></b><b><font size="3">Atlanta, Georgia 30339</font></b></p>
<p align="CENTER"><b><font size="3">___________________</font></b></p>
<p align="CENTER"><b><font size="3">NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</font></b></p>
<p align="CENTER"><b><font size="3">TO BE HELD ON MAY 16, 2000<br>
</font></b><b><font size="3">___________________</font></b></p>
<p><font size="3"> </font></p>
<p><font size="3"> The 2000 annual meeting of shareholders of Gables Residential
Trust will be held on Tuesday, May 16, 2000 at 9:00 a.m. local time. The
meeting will take place at The Vinings Club, located in Overlook III, the office
building of Gables' headquarters at 2859 Paces Ferry Road, Atlanta, Georgia.
Shareholders will vote upon the following proposals at the meeting:</font></p>
<p><font size="3"> 1. To elect three
Class III trustees to serve until the 2003 annual meeting of shareholders
and one Class I trustee to serve until the 2001 annual meeting of shareholders.
</font></p>
<p><font size="3"> 2. To consider
and act upon any other matters that may properly be brought before the annual
meeting and at any adjournments or postponements.</font></p>
<p><font size="3"> You may vote if you are a shareholder
of record as of the close of business on March 17, 2000. If you do not plan
to attend the meeting and vote your common shares in person, please vote in
one of the following ways: </font></p>
<ul>
<li><font size="3">Use the toll-free telephone number shown on the proxy card;</font></li>
<p></p>
<li><font size="3">Go to the website address shown on the proxy card and vote
over the Internet; or</font></li>
<p></p>
<li><font size="3">Mark, sign, date and promptly return the enclosed proxy card
in the postage-paid envelope.</font></li>
</ul>
<p><font size="3"> Any proxy may be revoked at any time
prior to its exercise at the annual meeting.</font></p>
<p> </p>
<dir>
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<dir>
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<p><font size="3"> By
Order of the Board of Trustees</font></p>
<p><br>
<font size="3"> /s/ Marvin
R. Banks, Jr.</font><BR>
<font size="3"> Marvin
R. Banks, Jr.</font>
<p><i><font size="3"> Secretary</font></i></p>
</dir>
</dir>
</dir>
</dir>
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</dir>
<p><font size="3">March 31, 2000</font></p>
<p align="center"> </p>
<p align="center"><b>TABLE OF CONTENTS </b></p>
<p><A HREF="#A">PROXY STATEMENT</A></p>
<p><A HREF="#B">QUESTIONS AND ANSWERS ABOUT THE ANNUAL MEETING</A><br>
<A HREF="#C">What is the purpose of the annual meeting?</A><br>
<A HREF="#D">Who is entitled to vote?</A><br>
<A HREF="#E">Who can attend the meeting?</A><br>
<A HREF="#F">How many shares must be represented at the meeting in
order to hold the meeting?</A><br>
<A HREF="#G">How do I vote?</A><br>
<A HREF="#H">Will other matters be voted on at the annual meeting?</A><br>
<A HREF="#I">Can I revoke my proxy instructions?</A><br>
<A HREF="#J">What other information should I review before voting?</A></p>
<p><A HREF="#K">PROPOSAL 1: ELECTION OF TRUSTEES</A><br>
<A HREF="#L">Introduction</A><br>
<A HREF="#M">Vote Required</A><br>
<A HREF="#N">Recommendation</A><br>
<A HREF="#O">Information Regarding Nominees, Other Trustees and Executive
Officers</A><br>
<A HREF="#P">Board of Trustees and Committees</A></p>
<p><A HREF="#Q">COMPENSATION OF TRUSTEES AND EXECUTIVE OFFICERS</A><br>
<A HREF="#R">Trustee Compensation</A><br>
<A HREF="#S">Executive Compensation</A><br>
<A HREF="#T">Summary Compensation Table</A><br>
<A HREF="#U">Option Grants in Fiscal Year 1999</A><br>
<A HREF="#V">Aggregated Option Exercises in Fiscal Year 1999 and Fiscal Year-End Option Values</A><br>
<A HREF="#W">Employment Agreements</A><br>
<A HREF="#X">Separation Agreements</A><br>
<A HREF="#Y">Share Performance Graph</A><br>
<A HREF="#Z">1994 Share Option Plan</A><br>
<A HREF="#AA">Incentive Compensation Plan</A><br>
<A HREF="#BB">Deferred Compensation Plan</A></p>
<p><A HREF="#CC">COMPENSATION COMMITTEE REPORT ON EXECUTIVE COMPENSATION</A><br>
<A HREF="#DD">Compensation Committee Interlocks and Insider Participation</A></p>
<p><A HREF="#EE">PRINCIPAL AND MANAGEMENT SHAREHOLDERS</A><br>
<A HREF="#FF">Beneficial Ownership Table</A><br>
<A HREF="#GG">Section 16(a) Beneficial Ownership Reporting Compliance</A></p>
<p><A HREF="#HH">OTHER MATTERS</A><br>
<A HREF="#II">Independent Public Accountants</A><br>
<A HREF="#JJ">Expenses of Solicitation</A><br>
<A HREF="#KK">Shareholder Proposals</A></p>
<p align="right"><font size="3">March 31, 2000</A></font></p>
<P ALIGN="CENTER">
<P ALIGN="CENTER"></P>
<P ALIGN="CENTER"><font size="3"><b>GABLES RESIDENTIAL TRUST</b></font></P>
<P ALIGN="CENTER"><font size="3"><b>2859 Paces Ferry Road<br>
</b></font><font size="3"><b>Overlook III, Suite 1450<br>
</b></font><font size="3"><b>Atlanta, Georgia 30339</b></font></P>
<P ALIGN="CENTER"><font size="3"><b>___________________</b></font></P>
<A NAME="A"></A><P ALIGN="CENTER"><font size="3"><b><BR>
PROXY STATEMENT</b></font></P>
<P ALIGN="CENTER"><font size="3"><b>___________________</b></font></P>
<P><BR>
<font size="3"> This proxy statement is furnished in
connection with the solicitation of proxies by the Board of Trustees of Gables
Residential Trust for use at the 2000 annual meeting of shareholders to be held
on Tuesday, May 16, 2000 at 9:00 a.m. local time. The meeting will take
place at the Vinings Club, located in Overlook III, the office building of Gables'
headquarters at 2859 Paces Ferry Road, Atlanta, Georgia, and at any adjournments
or postponements of the annual meeting. </font></P>
<P> </P>
<A NAME="B"></A><div align="center"><font size="3"><b>QUESTIONS AND ANSWERS
ABOUT THE ANNUAL MEETING</b></font> </div>
<P> </P>
<A NAME="C"></A><font size="3"><b>What is the purpose of the annual meeting?</b></font>
<P><font size="3"> At the annual meeting, shareholders
will act upon the matters set forth in the accompanying notice of meeting, including
the election of four trustees and any other matters that may properly come before
the meeting. </font></P>
<A NAME="D"></A><font size="3"><b>Who is entitled to vote?</b></font>
<P><font size="3"> All shareholders of record of Gables'
common shares at the close of business on March 17, 2000, which is referred
to as the record date, are entitled to receive notice of the annual meeting
and to vote the common shares held by them on the record date. Each outstanding
common share entitles its holder to cast one vote for each matter to be voted
upon.</font></P>
<A NAME="E"></A><font size="3"><b>Who can attend the meeting?</b></font>
<P><font size="3"> All shareholders of record of Gables'
common shares at the close of business on the record date, or their designated
proxies, are authorized to attend the annual meeting.</font></P>
<A NAME="F"></A><font size="3"><b>How many shares must be represented at the
meeting in order to hold the meeting?</b></font>
<P><font size="3"> The presence, in person or by proxy,
of holders of at least a majority of the total number of outstanding common
shares entitled to vote is necessary to constitute a quorum for the transaction
of business at the annual meeting. As of the record date, there were 24,541,719
common shares outstanding and entitled to vote at the annual meeting. Shares
that reflect abstentions or "broker non-votes" will be counted for purposes
of determining whether a quorum is present for the transaction of business at
the annual meeting. "Broker non-votes" are proxies received from brokers or
other nominees holding shares on behalf of their clients who have not been given
specific voting instructions from their clients with respect to non-routine
matters. Under the rules of the New York Stock Exchange, brokers and other nominees
do not have discretionary voting power to vote such shares on non-routine matters
without specific voting instructions from the beneficial owners of the shares.</font></P>
<A NAME="G"></A><font size="3"><b>How do I vote?</b></font>
<P><font size="3"> If your common shares are held by a
broker, bank or other nominee (i.e., in "street name"), you will receive instructions
from your nominee which you must follow in order to have your common shares
voted.</font></P>
<P><font size="3"> If you hold your shares in your own
name as a holder of record, you may vote in person at the annual meeting or
instruct the proxy holders named in the enclosed proxy card how to vote your
common shares by:</font></P>
<UL>
<LI><font size="3">using the toll-free telephone number shown on the proxy
card;</font></LI>
<p></p>
<LI><font size="3">going to the website address shown on the proxy card and
voting over the Internet; or </font></LI>
<p></p>
<LI><font size="3">marking, signing, dating and returning the proxy card in
the postage-paid envelope that we have provided to you. <B><I>Please note
that if you vote by telephone or over the Internet, you do not need to return
your proxy card.</i></b></font></LI>
</UL>
<A NAME="H"></A><font size="3"><b>Will other matters be voted on at the annual
meeting?</b></font>
<P><font size="3"> We are not aware of any other matters
to be presented at the annual meeting other than those described in this proxy
statement. If any other matters not described in the proxy statement are properly
presented at the meeting, proxies will be voted in accordance with the best judgment
of the proxy holders.</font></P>
<A NAME="I"></A><font size="3"><b>Can I revoke my proxy instructions?</b></font>
<P><font size="3"> You may revoke your proxy at any time
before it has been exercised by:</font></P>
<UL>
<LI><font size="3">filing a written revocation with the Secretary of Gables
at the address set forth below;</font></LI>
<p></p>
<LI><font size="3">filing a duly executed proxy bearing a later date; or</font></LI>
<p></p>
<LI><font size="3">appearing in person and voting by ballot at the annual
meeting.</font></LI>
</UL>
<P><font size="3"> Any shareholder of record as of the
record date attending the annual meeting may vote in person whether or not a
proxy has been previously given, but the presence (without further action) of
a shareholder at the annual meeting will not constitute revocation of a previously
given proxy.</font></P>
<A NAME="J"></A><P><font size="3"><b>What other information should I review
before voting?</b></font></P>
<P><font size="3"> Our 1999 annual report, including financial
statements for the fiscal year ended December 31, 1999, is being mailed
to shareholders concurrently with this proxy statement. The annual report, however,
is not part of the proxy solicitation material. A copy of our annual report
filed with the Securities and Exchange Commission (the "SEC") on Form 10-K,
including the financial statements and the financial statement schedules, may
be obtained without charge by:</font></P>
<UL>
<LI><font size="3">writing to the Secretary of Gables Residential Trust at
the following address: 2859 Paces Ferry Road, Suite 1450, Atlanta, Georgia
30339;</font></LI>
<p></p>
<LI><font size="3">accessing the EDGAR database at the SEC's website at <U>www.sec.gov</U>;</font></LI>
<p></p>
<LI><font size="3">going to Gables' website at <U>www.gables.com</U>;
or</font></LI>
<p></p>
<LI><font size="3">contacting the SEC by telephone at (800) SEC-0330.</font></LI>
</UL>
<P> </P>
<A NAME="K"></A><p align="center"><font size="3"><b>PROPOSAL 1: ELECTION OF
TRUSTEES</b></font></p>
<A NAME="L"></A><p><font size="3"><b>Introduction</b></font></p>
<P><font size="3"> The Board of Trustees of Gables currently
consists of nine members who are divided into three classes. At the annual meeting,
three Class III trustees will be elected to serve until the 2003 Annual Meeting
and until their successors are duly elected and qualified and one Class I trustee
will be elected to serve until the 2001 Annual Meeting and until his successor
is duly elected and qualified. </font></P>
<P><font size="3"> The Board of Trustees has nominated
Lauralee E. Martin, Mike E. Miles and John T. Rippel to serve as the Class III
trustees and James D. Motta to serve as the Class I trustee. All of the nominees
are currently serving as trustees of Gables. The Board of Trustees anticipates
that the nominees will continue to serve, if elected, as trustees. However,
if any of the nominees should be unable to accept election, the proxies will
be voted for the election of such other person or persons as the Board of Trustees
may recommend. The Board of Trustees will consider a nominee for election to
the Board of Trustees recommended by a shareholder of record if the shareholder
submits the nomination in compliance with the requirements of Gables' bylaws.
See "Other Matters—Shareholder Proposals" for a summary of these requirements.</font></P>
<A NAME="M"></A><font size="3"><b>Vote Required</b></font>
<P><font size="3"> Trustees must be elected by a plurality
of the votes cast at the annual meeting. This means that the four nominees receiving
the highest number of "yes votes" will be elected as trustees. Votes may be
cast FOR or WITHHELD FROM each nominee. Votes cast FOR the nominees will count
as "yes votes"; votes that are WITHHELD FROM the nominees will be excluded entirely
from the vote and will have no effect.</font></P>
<P><font size="3"> Furthermore, if you hold your common
shares in your own name as a holder of record, and you fail to vote your shares,
either in person or by proxy, the votes represented by your shares will be excluded
entirely from the vote and will have no effect. If, however, your common shares
are held by a broker, bank or other nominee (i.e., in "street name") and you
fail to give instructions as to how you want your shares voted, the broker,
bank or other nominee may vote the shares in their own discretion.</font></P>
<A NAME="N"></A><font size="3"><b>Recommendation</b></font>
<P><font size="3"> The Board of Trustees unanimously recommends
a vote FOR the nominees.</font></P>
<A NAME="O"></A><font size="3"><b>Information Regarding Nominees, Other Trustees
and Executive Officers</b></font>
<P><font size="3"> The following biographical descriptions
set forth certain information with respect to the four nominees for re-election
as trustees at the annual meeting, the incumbent trustees who are not up for
election at this annual meeting and the executive officers who are not trustees.
This information has been furnished by the respective individuals. References
in these descriptions to "Gables' predecessor" mean the Atlanta, Houston or
Dallas Divisions of Trammell Crow Residential. The following information is
as of February 1, 2000:</font></P>
<P><font size="3"><i>Nominees for Election as Trustees—Term Expiring 2003</i></font></P>
<P><font size="3"><B> Lauralee E. Martin.</b> Ms. Martin
is a trustee of Gables. Since 1996, Ms. Martin has served as Chief Financial
Officer of Heller Financial Inc., an international commercial finance company.
Ms. Martin reports directly to the Chairman and oversees the treasury operations,
tax, asset distribution, investor relations and controller functions. From 1993
to 1996, Ms. Martin served as Senior Group President of Heller. Prior to joining
Heller Financial Inc., she held various positions at General Electric Credit
Corporation, including President of General Electric Mortgage and Manager of
Construction Lending Operations. Ms. Martin received her MBA from the University
of Connecticut and her bachelor's degree from Oregon State University. She is
49 years old.</font></P>
<P><font size="3"><B> Mike E. Miles. </b>Dr. Miles is a
trustee of Gables and is currently self-employed in an investment management
and consulting capacity. From 1994 to 1999, he was Portfolio Manager and Head
of Real Estate Research for the Fidelity Real Estate Asset Manager, a series
of institutional investment vehicles that combine public securities with direct
real estate ownership. Prior to joining Fidelity, Dr. Miles was Executive Vice
President of the Prudential Realty Group and Managing Director of Prudential
Real Estate Investors. He previously held full-time academic positions at the
University of North Carolina at Chapel Hill, the University of Wisconsin—Madison,
and the University of Hawaii—Manoa. Before entering academia, he served as
Vice President, Finance for Alpert Invest Corporation, a real estate development
firm. Dr. Miles received his bachelor's degree from Washington and Lee University,
his MBA from Stanford University, and his Ph.D. from the University of Texas
at Austin. He is 53 years old.</font></P>
<P><font size="3"> <B>John T. Rippel.</B> Mr. Rippel is
a trustee of Gables. He served as President and Chief Operating Officer of Gables
from December, 1995 to May, 1999. From the time of Gables' initial public offering
in January, 1994 to December, 1995, Mr. Rippel served as Senior Vice President
and was responsible for the development and acquisition of multifamily communities
in Houston, San Antonio and Austin. He joined Gables' predecessor in 1982 as
Chief Financial Officer for its start-up operation in Houston and later led
the expansion of the organization into the Southwestern United States. Prior
to joining Gables' predecessor, Mr. Rippel was a CPA with Kenneth Leventhal
Company, a national public accounting firm recognized for its expertise in the
real estate industry. Mr. Rippel is a graduate of The University of Texas at
Austin, where he received a bachelor's degree in accounting. He is 45 years
old. </font></P>
<P><font size="3"><i>Nominee for Election as Trustee—Term Expiring 2001</i></font></P>
<P><font size="3"> <B>James D. Motta. </B>Mr. Motta is
a trustee of Gables. He is currently President and Chief Executive Officer of
St. Joe/Arvida Company, a major real estate development company headquartered
in Boca Raton, Florida. Throughout its 41-year history, Arvida has built more
than 50 master-planned communities comprising more than 35,000 new homes and
developed approximately 5 million square feet of commercial and industrial facilities.
In November, 1997, the assets of Arvida were acquired by the St. Joe Company.
Mr. Motta joined Arvida in 1980 and, prior to becoming President and Chief Executive
Officer in April, 1995, held various positions, including President of certain
divisions, Executive Vice President and Chief Operating Officer. Mr. Motta is
a graduate of the University of Florida and a licensed general contractor and
licensed real estate broker in the state of Florida. He is an active member
of the Urban Land Institute and serves on its Recreation Development Council.
Mr. Motta is on the Board of Directors of Corrections Property Trust, the Board
of Directors of the Broward Workshop, a member of the Association of Florida
Community Developers and a founding member of Education Partners, Inc., a company
that strives to bring world-class educational experience to public and private
school systems. He is 43 years old.</font></P>
<P><font size="3"><i>Incumbent Trustees—Term Expiring 2001</i></font></P>
<P><font size="3"><B> Marcus E. Bromley.</b> Mr. Bromley
is a trustee of Gables. He most recently served as Chairman of the Board of
Trustees and Executive Chairman from April, 1999 through December 31, 1999.
Prior to becoming Executive Chairman in April, 1999, Mr. Bromley was Chairman
of the Board of Trustees and Chief Executive Officer, positions he held since
Gables' initial public offering in January, 1994. He also served as President
of Gables from the time of the initial public offering until December, 1995
when Mr. Rippel was named President and Chief Operating Officer. Mr. Bromley
joined Gables' predecessor in 1982 and was responsible for overseeing the development
and lease-up of multifamily properties in the Southeastern United States. Prior
to that, he was Chief Financial Officer for a large engineering firm and Assistant
Treasurer for the Amelia Island Company. Mr. Bromley received his MBA from the
University of North Carolina at Chapel Hill and his bachelor's degree in economics
from Washington and Lee University. He is a former president of the Atlanta
Apartment Association and currently serves on the Board of Directors of the
National Multi-Housing Council as well as the Board of Advisors for The School
of Commerce, Economics and Politics at Washington and Lee University. He is
50 years old.</font></P>
<P><font size="3"><B> David M. Holland.</b> Mr. Holland
is a trustee of Gables. He is a retired Senior Vice President and Assistant
to the Chairman of the Board of DSC Communications Corporation, a communications
equipment company listed on the New York Stock Exchange, which was acquired
by Alcatel, a company based in France. He formerly served as Senior Vice President,
Sales, Marketing and Service, as well as Corporate Planning and Development
for DSC Communications Corporation. Prior to joining DSC Communications Corporation,
Mr. Holland held various positions such as Executive Vice President and Chief
Marketing Officer at Sprint Communication Company as well as executive positions
at Datapoint Corporation and Xerox Corporation. He received his bachelor's degree
in business from Michigan State University. Mr. Holland is 63 years old.</font></P>
<P><font size="3"><i>Incumbent Trustees—Term Expiring 2002</i></font></P>
<P><font size="3"> <B>John W. McIntyre</B>. Mr. McIntyre
is a trustee of Gables. He is a former Vice Chairman of the Board of Directors
of Citizens and Southern Corporation, a bank holding company, and former Chairman
of the Board of Directors and Chief Executive Officer of Citizens and Southern
Georgia Corporation and Citizens and Southern National Bank. Mr. McIntyre is
a director or trustee of a number of organizations, including the Invesco Global
Health Science Fund, the Invesco Mutual Funds and affiliated entities, and the
Kaiser Foundation Health Plan of Georgia. Mr. McIntyre received his bachelor's
degree in business administration from Emory University School of Business and
attended the Business Executive Management Program at Stanford University Graduate
School of Business. He is 69 years old.</font></P>
<P><font size="3"> <B>D. Raymond Riddle</B>. Mr. Riddle
is a trustee of Gables. He is a retired Chairman of the Board of Directors and
Chief Executive Officer of National Service Industries, Inc., a diversified
manufacturing and service company. Mr. Riddle served in an executive capacity
with National Service Industries, Inc. from January, 1993 until his retirement
in February, 1996. Prior to that, Mr. Riddle served as President and Chief Executive
Officer of Wachovia Bank of Georgia, N.A. and of Wachovia Corporation of Georgia,
the parent company of Wachovia Bank of Georgia, N.A. Mr. Riddle serves as a
director of AMC, Inc., Atlanta Gas Light Company, Atlantic American Corporation,
Equifax, Inc., and Munich American Reassurance Company. He is 66 years old.</font></P>
<P><font size="3"> <B>Chris D. Wheeler</B>. Mr. Wheeler
is Chairman of the Board of Trustees, President and Chief Executive Officer
of Gables. He succeeded Mr. Bromley as Chairman of the Board of Trustees on
January 1, 2000 and as Chief Executive Officer in April, 1999. Mr. Wheeler succeeded
Mr. Rippel as President in May, 1999. Prior to that, he served as a trustee
and Senior Vice President of Gables since Gables' acquisition of the business
and properties of Trammell Crow Residential's South Florida operations in April,
1998. Previously, Mr. Wheeler had 16 years experience with various Trammell
Crow entities. He was Group Managing Partner responsible for all Trammell Crow
Residential multifamily residential development and management in South Florida,
the South Central United States, and the Mid-Atlantic and Northeast United States.
Mr. Wheeler graduated with honors from the California Institute of Technology
with a major in applied physics. He received his MBA from Harvard Graduate School
of Business in 1980. Mr. Wheeler currently serves as Chairman of the Architectural
Review Board in the town of Gulf Stream, Florida and is a Director of the Delray
Beach Public Library Board. In addition to being a member of the Urban Land
Institute, he also serves as a Director on the National Multi-Housing Council.
He is 43 years old.</font></P>
<P><font size="3"><i>Executive Officers Who Are Not Trustees</i></font></P>
<P><font size="3"> <B>C. Jordan Clark. </B>Mr. Clark has
served as Senior Vice President of Gables since Gables' initial public offering
in January, 1994 and, since 1997, as Chief Investment Officer in charge of Gables'
development, acquisition and disposition efforts. He joined Gables' predecessor
in 1986 as a development associate. Prior to that, Mr. Clark was curator of
the 3M art collection in Minnesota. He received his MBA from the University
of North Carolina at Chapel Hill and holds a master's degree in art history
from the University of Virginia and an undergraduate degree in English from
Davidson College. Mr. Clark is a member of the Multifamily Council of the Urban
Land Institute. He is 44 years old.</font></P>
<P><font size="3"> <B>Marvin R. Banks, Jr.</B> Mr. Banks
is Senior Vice President, Secretary and Chief Financial Officer of Gables, and
has been since Gables' initial public offering in January, 1994. He is responsible
for corporate financings, financial reporting, accounting and tax matters. Mr.
Banks joined Gables' predecessor in 1987 and, since 1990, was the Chief Financial
Officer for certain divisions. Prior to joining Gables' predecessor, he was
a CPA with Ernst & Young, where he specialized in the financial services
and construction industries. Mr. Banks is a graduate of the University of Texas
at Austin with a bachelor's degree in accounting and a member of the Urban Land
Institute. He is 38 years old.</font></P>
<P><font size="3"> <B>Michael M. Hefley.</B> Mr. Hefley
is Senior Vice President and Chief Operating Officer of Gables. Prior to succeeding
Mr. Rippel in this role in May, 1999, Mr. Hefley served as Vice President of
fee-managed operations since Gables' acquisition of the business and properties
of Trammell Crow Residential's South Florida operations in April, 1998. Previously,
Mr. Hefley was with Trammell Crow Residential for 13 years where he began his
career as District Manager in Maryland and Virginia. He relocated to South Florida
in 1985 and later became Executive Vice President for the Florida region. Mr.
Hefley has a total of 17 years in the real estate and property management business.
He holds a bachelor's degree in business from Southwest Texas State University
and is an active member of the Palm Beach, Broward and Dade Apartment Associations.
He is 41 years old.</font></P>
<A NAME="P"></A><font size="3"><b>Board of Trustees and Committees</b></font>
<P><font size="3"> Gables is managed by a nine member board
of trustees, all of whom are independent of management, except Mr. Wheeler.
The Board of Trustees is divided into three classes, and the members of each
class of trustees serve for staggered three-year terms. The Board is composed
of three Class I Trustees (Mr. Bromley, Mr. Holland and Mr. Motta), three Class
II Trustees (Mr. McIntyre, Mr. Riddle and Mr. Wheeler), and three Class III
Trustees (Ms. Martin, Dr. Miles and Mr. Rippel). The terms of the Class I and
Class II trustees will expire upon the election and qualification of trustees
at the annual meetings of shareholders held in 2001 and 2002, respectively.
At each annual meeting of shareholders, trustees will be re-elected or elected
for a full term of three years to succeed those trustees whose terms are expiring.</font></P>
<P><font size="3"> Gables GP, Inc. is a wholly-owned subsidiary
of Gables Residential Trust and the sole general partner of Gables Realty Limited
Partnership (the "Operating Partnership"), the entity through which Gables Residential
Trust principally conducts its business operations. The Board of Directors of
Gables GP, Inc. and the Board of Trustees of Gables Residential Trust each have
the same members.</font></P>
<P><font size="3"> The Board of Trustees met eight times
in 1999. Each trustee attended at least 75% of the aggregate of the total number
of meetings of the Board of Trustees and meetings of the committees of the Board
of Trustees of which he or she was a member.</font></P>
<P><font size="3"> <I>Audit Committee</I>. The Board of
Trustees has established an Audit Committee currently consisting of Mr. McIntyre,
as Chairperson, Mr. Riddle and Mr. Rippel. The Audit Committee is responsible
for (1) making recommendations concerning the engagement of independent public
accountants, (2) reviewing the plans and results of the audit engagement with
the independent public accountants, (3) reviewing the independence of the independent
public accountants, (4) considering the range of audit and non-audit fees and
(5) reviewing the adequacy of Gables' internal accounting controls. The Audit
Committee met two times in 1999.</font></P>
<P><font size="3"> <I>Compensation Committee</I>. The Board
of Trustees has established a Compensation Committee, currently consisting of
Mr. Holland, as Chairperson, and Ms. Martin, Mr. McIntyre and Mr. Riddle. The
Compensation Committee exercises all powers of the Board of Trustees in connection
with the compensation of executive officers, including incentive compensation
and benefit plans. The Compensation Committee also has authority to grant awards
under the Fourth Amended and Restated 1994 Share Option and Incentive Plan (the
"1994 Share Option Plan" or "Plan") and cash bonuses under Gables' Incentive
Compensation Plan. The Compensation Committee met three times in 1999.</font></P>
<P><font size="3"> <I>Investment Committee</I>. Each of
the Board of Directors of Gables GP, Inc. and the Board of Trustees of Gables
has established an Investment Committee of its respective Board, currently consisting
of Ms. Martin, as Chairperson, Mr. Bromley, Mr. Rippel and Mr. Wheeler. In general,
the Investment Committee of Gables GP, Inc. has authority to cause Gables GP,
Inc., as general partner of the Operating Partnership, to make investment decisions
on behalf of the Operating Partnership; provided, however, that the general
subject matter of any such decision must have been previously approved by the
full Board of Directors of Gables GP, Inc. The Investment Committee of Gables
has authority to enable Gables to guarantee indebtedness with respect to duly
approved transactions entered into or to be entered into by the Operating Partnership.
The Investment Committees of Gables GP, Inc. and Gables met five times in 1999.</font></P>
<P><font size="3"> <I>Nominating Committee</I>. The Board
of Trustees has established a Nominating Committee consisting of Mr. Wheeler,
as Chairperson, Mr. Bromley, Ms. Martin and Mr. McIntyre. The Nominating Committee
is primarily responsible for making recommendations to the Board with respect
to (1) the size, composition, structure, functions, policies and practices of
the Board and its committees, (2) the qualifications to be sought in the selection
of persons to be considered for election to the office of Trustee and each committee
of the Board, (3) the procedures for identifying and recruiting qualified candidates
for election to the office of Trustee, (4) the candidates for election to fill
vacancies in the office of Trustee and each committee of the Board, (5) the
slate of nominees for election to the office of Trustee at each annual meeting
of shareholders, and (6) the evaluation of the Board's performance, its relationship
with management, and of individual trustees. The Nominating Committee met one
time in 1999.</font></P>
<P> </P>
<A NAME="Q"></A><p align="center"><font size="3"><b>COMPENSATION OF TRUSTEES
AND EXECUTIVE OFFICERS</b></font></p>
<A NAME="R"></A><p><font size="3"><b>Trustee Compensation</b></font></p>
<P><font size="3"> Trustees of Gables who are also employees
receive no additional compensation for their services as trustees. During 1999,
each non-employee trustee received for his or her service as a trustee a quarterly
trustee's fee of $5,000, $1,300 per day for personal attendance at any meetings
of the full Board of Trustees, and $500 per day for personal attendance at any
committee meetings held on days on which no meetings of the full Board of Trustees
were held. In addition, in 1999, the Investment Committee chairperson received
$5,000 and the other committee chairpersons each received $2,500. Non-employee
trustees may elect to waive part or all of such fees in exchange for common
share grants under the 1994 Share Option Plan.</font></P>
<P><font size="3"> Under the 1994 Share Option Plan, following
the 1999 annual meeting of shareholders, each of Gables' non-employee trustees
received 250 unrestricted common shares and an option to purchase 2,500 common
shares at the market price on the date of grant. All such options vest one year
after the date of grant.</font></P>
<P><font size="3"> Gables has adopted a deferred compensation
program for non-employee trustees pursuant to which non-employee trustees may
elect to receive, on a deferred basis, common shares in lieu of cash fees. These
trustees may also elect to defer receipt of common shares granted to them as
non-cash compensation. During the term of deferral, credits in the form of additional
common shares are made to the non-employee trustees' deferral accounts to reflect
dividends paid on the common shares previously credited to the accounts. All
deferred amounts will be settled in common shares, either in a lump sum or annual
installments, following termination of membership on the Board of Trustees.</font></P>
<A NAME="S"></A><font size="3"><b>Executive Compensation</b></font>
<A NAME="T"></A><P><font size="3"> <I>Summary Compensation Table</I>. The
following table sets forth the compensation awarded to the Chief Executive Officer
and the five other most highly compensated executive officers whose total salary
and bonus exceeded $100,000 during each of the fiscal years ended December 31,
1999, 1998 and 1997.</font></P>
<p> </p>
<table cellpadding="0" cellspacing="0" border="0">
<tr valign="bottom">
<td colspan=23>
<div align="center"><font size="3"><b>S</b></font><b><font size="2">UMMARY</font>
<font size="3">C</font><font size="2">OMPENSATION </font><font size="3">T</font><font size="2">ABLE</font></b></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=5>
<div align="center"><font size="1"><b>Annual<br>
Compensation</b></font></div>
</td>
<td colspan=2>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan="6">
<div align="center"><font size="1"><b>Long</b><b>-Term<br>
Compensation<br>
Awards</b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=2>
<div align="center"></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan=5>
<hr size="1" noshade width="100%" align="center">
</td>
<td colspan=2> </td>
<td> </td>
<td colspan="6">
<hr size="1" noshade width="100%" align="center">
</td>
<td> </td>
<td> </td>
<td colspan=2> </td>
</tr>
<tr valign="bottom">
<td colspan=2>
<div align="center"><b><font size="1">Name and Principal<br>
Position </font></b></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"><b><font size="1">Year</font></b></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=2>
<div align="center"><b><font size="1">Salary<br>
($)</font></b></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=2>
<div align="center"><b><font size="1">Bonus<br>
($)</font></b></div>
</td>
<td colspan=2>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"><b><font size="1">Restricted<br>
Share<br>
Awards<br>
($)</font></b></div>
</td>
<td colspan=2>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=2>
<div align="center"><b><font size="1">Options<br>
(#)</font></b></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"><b><font size="1">All Other<br>
Compensation<br>
($) </font></b></div>
</td>
<td colspan=2>
<div align="center"><b><font size="1">(1)</font></b></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<hr size="1" noshade width="100%" align="center">
</td>
<td> </td>
<td>
<hr size="1" noshade width="100%" align="center">
</td>
<td> </td>
<td colspan=2>
<hr size="1" noshade width="100%" align="center">
</td>
<td> </td>
<td colspan=2>
<hr size="1" noshade width="100%" align="center">
</td>
<td colspan=2> </td>
<td> </td>
<td>
<hr size="1" noshade width="100%" align="center">
</td>
<td colspan=2> </td>
<td> </td>
<td colspan=2>
<hr size="1" noshade width="100%" align="center">
</td>
<td> </td>
<td>
<hr size="1" noshade width="100%" align="center">
</td>
<td colspan=2> </td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Chris D. Wheeler (2)</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">$301,781</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">$409,844</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (3)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">$254,531</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (4)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">200,000</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">$ 1,769</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="top">
<td colspan=2><font size="1">Chairman of the Board,<br>
President and Chief </font><font size="1">Executive Officer</font>
</td>
<td> </td>
<td><font size="1">1998</font></td>
<td> </td>
<td colspan=2>
<p align="right"><font size="1">142,500</font>
</td>
<td> </td>
<td colspan=2>
<p align="right"><font size="1">199,100</font>
</td>
<td colspan=2><font size="1"> (5)</font></td>
<td> </td>
<td>
<p align="right"><font size="1">117,015</font>
</td>
<td colspan=2><font size="1"> (6)</font></td>
<td> </td>
<td colspan=2>
<p align="right"><font size="1">156,300</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">643</font>
</td>
<td colspan=2> </td>
</tr>
<tr valign="bottom">
<td colspan=2> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td colspan=2> </td>
<td colspan=2> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
</tr>
<tr valign="bottom">
<td colspan=2><font size="1">C. Jordan Clark</font> </td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">250,000</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">188,406</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (7)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">152,719</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (8)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">2,480</font>
</td>
<td colspan=2> </td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Senior Vice President</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1998</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">182,500</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">260,879</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (9)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">126,387</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (10)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">150,000</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">3,492</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr>
<td colspan=2><font size="1">And Chief Investment Officer</font> </td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1997</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">152,000</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">118,713</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (11)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">176,137</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (12)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">3,448</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td>
<p align="right">
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Michael M. Hefley (13)</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">188,233</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">198,078</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (14)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">144,234</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (15)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">1,753</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2 rowspan="2">
<p><font size="1">Senior Vice President<br>
and</font><font size="1"> Chief Operating Officer</font>
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p>
<p>
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p>
<p>
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p>
</td>
<td colspan=2 rowspan="2">
<p align="left">
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p align="right">
</td>
<td colspan=2 rowspan="2">
<p align="left">
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p>
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p>
</td>
<td rowspan="2" colspan=2>
<p align="left">
</td>
</tr>
<tr> </tr>
<tr valign="bottom">
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td>
<p align="right">
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Marvin R. Banks, Jr.</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">225,000</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">127,438</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (16)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">101,813</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (17)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">5,360</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Senior Vice President</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1998</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">176,250</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">242,784</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (18)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">184,976</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (19)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">100,000</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">6,301</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1"> and</font> <font size="1">Chief Financial </font><font size="1">Officer</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1997</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">152,000</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">81,688</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (20)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">80,062</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (21)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">5,938</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td>
<p align="right">
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Marcus E. Bromley (22)</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">255,959</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">224,435</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (23)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">166,475</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (24)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">920,062</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (25)</font>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Former Chairman of the </font><font size="1">Board, Executive</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1998</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">246,250</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">340,558</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (26)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">236,800</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (27)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">200,000</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">6,074</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2 rowspan="2">
<p><font size="1"> Chairman</font><font size="1"> and Chief Executive
Officer</font>
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p align="CENTER"><font size="1">1997</font>
<p>
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p align="RIGHT"><font size="1">180,000</font>
<p>
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p align="RIGHT"><font size="1">112,025</font>
<p>
</td>
<td colspan=2 rowspan="2">
<p align="left"><font size="1"> (28)</font>
<p align="left">
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p align="right"><font size="1">96,075</font>
</td>
<td colspan=2 rowspan="2">
<p align="left"><font size="1"> (29)</font>
<p align="left">
</td>
<td rowspan="2"> </td>
<td colspan=2 rowspan="2">
<p align="RIGHT"><font size="1">0</font>
<p>
</td>
<td rowspan="2"> </td>
<td rowspan="2">
<p align="RIGHT"><font size="1">5,110</font>
<p>
</td>
<td rowspan="2" colspan=2>
<p>
<p>
</td>
</tr>
<tr> </tr>
<tr valign="bottom">
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td>
<p align="right">
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td colspan=2>
<p>
</td>
<td> </td>
<td>
<p>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">John T. Rippel (30) </font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1999</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">106,233</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td>
<p align="right"><font size="1">0</font>
</td>
<td colspan=2>
<p align="left">
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">1,001,968</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (31)</font>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1">Former President and </font><font size="1">Chief </font><font size="1">Operating</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1998</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">218,750</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">289,939</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (32)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">205,691</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (33)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">150,000</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">6,903</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="1"> Officer</font>
</td>
<td> </td>
<td>
<p align="CENTER"><font size="1">1997</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">160,000</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">101,688</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (34)</font>
</td>
<td> </td>
<td>
<p align="right"><font size="1">80,062</font>
</td>
<td colspan=2>
<p align="left"><font size="1"> (35)</font>
</td>
<td> </td>
<td colspan=2>
<p align="RIGHT"><font size="1">0</font>
</td>
<td> </td>
<td>
<p align="RIGHT"><font size="1">6,742</font>
</td>
<td colspan=2>
<p>
</td>
</tr>
<tr valign="bottom">
<td colspan=2> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td colspan=2> </td>
<td colspan=2> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td> </td>
<td colspan=2> </td>
</tr>
</TABLE>
<hr width="100" size="1" noshade align="left">
<font size="3">(1) 1999 amounts include Gables' matching contribution under its
401(k) plan ($1,339 for Mr. Wheeler, $2,000 for Mr. Clark, $1,333 for Mr. Hefley,
$5,000 for Mr. Banks, $3,333 for Mr. Bromley and $5,000 for Mr. Rippel) and the
value of premiums paid by Gables for split-dollar life insurance coverage for
1999 ($430 for Mr. Wheeler, $480 for Mr. Clark, $420 for Mr. Hefley, $360 for
Mr. Banks, $820 for Mr. Bromley and $0 for Mr. Rippel).</font>
<p><font size="3">(2) In April, 1999, Mr. Wheeler succeeded Mr. Bromley in the
role of Chief Executive Officer, and on January 1, 2000, Mr. Wheeler succeeded
Mr. Bromley as Chairman of the Board of Trustees. Mr. Wheeler was originally
hired as a Senior Vice President in April, 1998. Accordingly, there is no compensation
information provided for periods prior to April 1, 1998.</font></p>
<p><font size="3">(3) Amount consists of (i) $325,000 which was paid in cash in
2000 and (ii) 3,750 unrestricted shares awarded on January 17, 2000 valued at
$22.625 per share.</font></p>
<p><font size="3">(4) Consists of 11,250 restricted shares awarded on January
17, 2000 valued at $22.625 per share. These restricted shares vest in three
equal annual installments beginning January 1, 2001. Dividends are payable on
these restricted shares.</font></p>
<p><font size="3">(5) Amount consists of (i) $140,615 which was paid in cash in
1999 and (ii) 2,666 unrestricted shares awarded on April 1, 1999 valued at $21.9375
per share.</font></p>
<p><font size="3">(6) Consists of 5,334 restricted shares awarded on April 1,
1999 valued at $21.9375 per share. These restricted shares vest in two equal
annual installments beginning April 1, 2000. Dividends are payable on these
restricted shares. The value of such restricted shares as of December 31, 1999
was $128,016.</font></p>
<p><font size="3">(7) Amount consists of (i) $137,500 which was paid in cash in
2000 and (ii) 2,250 unrestricted shares awarded on January 17, 2000 valued at
$22.625 per share.</font></p>
<p><font size="3">(8) Consists of 6,750 restricted shares awarded on January 17,
2000 valued at $22.625 per share. These restricted shares vest in three equal
annual installments beginning January 1, 2001. Dividends are payable on these
restricted shares.</font></p>
<p><font size="3">(9) Amount consists of (i) $218,750 which was paid in cash in
1999 and (ii) 1,812 unrestricted shares awarded on February 9, 1999 valued at
$23.25 per share.</font></p>
<p><font size="3">(10) Consists of 5,436 restricted shares awarded on February
9, 1999 valued at $23.25 per share. These restricted shares vest in three equal
annual installments beginning January 1, 2000. Dividends are payable on these
restricted shares. The value of such restricted shares as of December 31, 1999
was $130,464.</font></p>
<p><font size="3">(11) Amount consists of (i) $60,000 which was paid in cash in
1998 and (ii) 2,200 unrestricted shares awarded on February 12, 1998 valued
at $26.6875 per share.</font></p>
<p><font size="3">(12) Consists of 6,600 restricted shares awarded on February
12, 1998 valued at $26.6875 per share. These restricted shares vest in three
equal annual installments beginning January 1, 1999. Dividends are payable on
these restricted shares. The value of such restricted shares (both vested and
unvested) as of December 31, 1999 was $158,400.</font></p>
<p><font size="3">(13) Mr. Hefley was originally hired as a Vice President in
April, 1998. In May, 1999, Mr. Hefley succeeded Mr. Rippel in the role of Chief
Operating Officer. Accordingly, there is no compensation information provided
for periods prior to January 1, 1999.</font></p>
<p><font size="3">(14) Amount consists of (i) $150,000 which was paid in cash
in 2000 and (ii) 2,125 unrestricted shares awarded on January 17, 2000 valued
at $22.625 per share.</font></p>
<p><font size="3">(15) Consists of 6,375 restricted shares awarded on January
17, 2000 valued at $22.625 per share. These restricted shares vest in three
equal annual installments beginning January 1, 2001. Dividends are payable on
these restricted shares.</font></p>
<p><font size="3">(16) Amount consists of (i) $93,500 which was paid in cash in
2000 and (ii) 1,500 unrestricted shares awarded on January 17, 2000 valued at
$22.625 per share.</font></p>
<p><font size="3">(17) Consists of 4,500 restricted shares awarded on January
17, 2000 valued at $22.625 per share. These restricted shares vest in three
equal annual installments beginning January 1, 2001. Dividends are payable on
these restricted shares.</font></p>
<p><font size="3">(18) Amount consists of (i) $181,125 which was paid in cash
in 1999, (ii) 1,000 unrestricted shares awarded on April 1, 1998 valued at $27.0625
per share, and (iii) 1,488 unrestricted shares awarded on February 9, 1999 valued
at $23.25 per share.</font></p>
<p><font size="3">(19) Consists of (i) 3,000 restricted shares awarded on April
1, 1998 valued at $27.0625 per share which vest in three equal annual installments
beginning April 1, 1999 and (ii) 4,464 restricted shares awarded on February
9, 1999 valued at $23.25 per share which vest in three equal annual installments
beginning January 1, 2000. Dividends are payable on all of these restricted
shares. The value of such restricted shares (both vested and unvested) as of
December 31, 1999 was $179,136.</font></p>
<p><font size="3">(20) Amount consists of (i) $55,000 which was paid in cash in
1998 and (ii) 1,000 unrestricted shares awarded on February 12, 1998 valued
at $26.6875 per share.</font></p>
<p><font size="3">(21) Consists of 3,000 restricted shares awarded on February
12, 1998 valued at $26.6875 per share. These restricted shares vest in three
equal annual installments beginning January 1, 1999. Dividends are payable on
these restricted shares. The value of such restricted shares (both vested and
unvested) as of December 31, 1999 was $72,000.</font></p>
<p><font size="3">(22) Mr. Bromley was succeeded by Mr. Wheeler as Chairman of
the Board of Trustees on January 1, 2000 and as Chief Executive Officer in April,
1999. From April, 1999 through December 31, 1999, Mr. Bromley held the role
of Executive Chairman. See "Separation Agreements."</font></p>
<p><font size="3">(23) Amount consists of (i) $168,958 which was paid in cash
in 2000 and (ii) 2,452 unrestricted shares awarded on January 17, 2000 valued
at $22.625 per share.</font></p>
<p><font size="3">(24) Consists of 7,358 restricted shares awarded on January
17, 2000 valued at $22.625 per share. These restricted shares were scheduled
to vest in three equal annual installments beginning January 1, 2001. Pursuant
to Mr. Bromley's separation agreement dated January 31, 2000, all restricted
shares became fully vested effective as of the date of grant.</font></p>
<p><font size="3">(25) Amount includes a lump sum severance payment of $915,909
made in 2000 pursuant to Mr. Bromley's separation agreement.</font></p>
<p><font size="3">(26) Amount consists of (i) $261,625 which was paid in cash
in 1999, (ii) 1,000 unrestricted shares awarded on April 1, 1998 valued at $27.0625
per share, and (iii) 2,231 unrestricted shares awarded on February 9, 1999 valued
at $23.25 per share.</font></p>
<P><font size="3">(27)</font><font size="3"> Consists of (i) 3,000 restricted
shares awarded on April 1, 1998 valued at $27.0625 per share which were scheduled
to vest in three equal annual installments beginning April 1, 1999 and (ii)
6,693 restricted shares awarded on February 9, 1999 valued at $23.25 per share
which were scheduled to vest in three equal annual installments beginning January
1, 2000. The value of such restricted shares (both vested and unvested) as of
December 31, 1999 was $232,632. Pursuant to Mr. Bromley's separation agreement,
all restricted shares became fully vested effective as of January 1, 2000. Dividends
were payable on these restricted shares.</font></P>
<p><font size="3">(28)</font><font size="3"> </font><font size="3">Amount consists
of (i) $80,000 which was paid in cash in 1998 and (ii) 1,200 unrestricted shares
awarded on February 12, 1998 valued at $26.6875 per share.</font></p>
<p><font size="3">(29)</font><font size="3"> </font><font size="3">Consists of
3,600 restricted shares awarded on February 12, 1998 valued at $26.6875 per
share. These restricted shares were scheduled to vest in three equal annual
installments beginning January 1, 1999. The value of such restricted shares
(both vested and unvested) as of December 31, 1999 was $86,400. Pursuant to
Mr. Bromley's separation agreement, all restricted shares became fully vested
effective as of January 1, 2000. Dividends were payable on these restricted
shares.</font></p>
<p><font size="3">(30)</font><font size="3"> </font><font size="3">Effective May,
1999, Mr. Rippel resigned as President and Chief Operating Officer. Mr. Hefley
assumed the role of Chief Operating Officer and Mr. Wheeler assumed the role
of President. See "Separation Agreements."</font></p>
<p><font size="3">(31)</font><font size="3"> </font><font size="3">Amount includes
a lump sum severance payment of $996,968 made in 1999 pursuant to Mr. Rippel's
separation agreement dated July 1, 1999.</font></p>
<p><font size="3">(32)</font><font size="3"> </font><font size="3">Amount consists
of (i) $221,375 which was paid in cash in 1999, (ii) 1,000 unrestricted shares
awarded on April 1, 1998 valued at $27.0625 per share, and (iii) 1,785 unrestricted
shares awarded on February 9, 1999 valued at $23.25 per share.</font></p>
<p><font size="3">(33)</font><font size="3"> </font><font size="3">Consists of
(i) 3,000 restricted shares awarded on April 1, 1998 valued at $27.0625 per
share, which were scheduled to vest in three equal annual installments beginning
April 1, 1999 and (ii) 5,355 restricted shares awarded on February 9, 1999 valued
at $23.25 per share which were scheduled to vest in three equal annual installments
beginning January 1, 2000. Pursuant to Mr. Rippel's separation agreement, all
restricted shares became fully vested effective May 21, 1999. Dividends were
payable on these restricted shares.</font></p>
<p><font size="3">(34)</font><font size="3"> </font><font size="3">Amount consists
of (i) $75,000 which was paid in cash in 1998 and (ii) 1,000 unrestricted shares
awarded on February 12, 1998 valued at $26.6875 per share.</font></p>
<p><font size="3">(35)</font><font size="3"> </font><font size="3">Consists of
3,000 Restricted Shares awarded on February 12, 1998 valued at $26.6875 per
share. These restricted shares were scheduled to vest in three equal annual
installments beginning January 1, 1999. Pursuant to Mr. Rippel's separation
agreement, all restricted shares became fully vested effective as of May 21,
1999. Dividends were payable on these restricted shares.</font></p>
<A NAME="U"></A><P><font size="3"><I> Option Grants</i>. The following
table sets forth information with respect to options granted during 1999 to
the Chief Executive Officer and the other named executive officers.</font></P>
<table cellspacing=0 cellpadding=0>
<tr valign="bottom">
<td colspan=23>
<div align="center"><b><font size="2">O<font size="1">PTION</font> G<font size="1">RANTS
IN</font> F<font size="1">ISCAL</font> Y<font size="1">EAR</font> 1999</font></b></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=3>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=15>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=3>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=15>
<div align="center"><b><font size="1">Individual Grants</font></b> </div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=3>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=15>
<hr width="100%" size="1" noshade>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=3>
<div align="center"><font size="1"><b>Name</b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=2>
<div align="center"><font size="1"><b>Number of<br>
Shares<br>
Underlying<br>
Options<br>
Granted<br>
(#) </b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=3>
<div align="center"><font size="1"><b>Percent of<br>
Total Options<br>
Granted to<br>
Employees in<br>
Fiscal Year </b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td colspan=4>
<p align="center">
<p align="center"><font size="1"><b>Exercise<br>
or Base<br>
Price<br>
($/share) </b></font></p>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"><font size="1"><b>Expiration<br>
Date </b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"><font size="1"><b>Grant<br>
Date<br>
Valuation </b></font></div>
</td>
<td>
<div align="center"></div>
</td>
<td>
<div align="center"></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=3>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td colspan=2>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td> </td>
<td colspan=3>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td colspan=4>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td> </td>
<td>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td>
<hr width="100%" size="1" noshade>
</td>
<td> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan=3> <font size="2">Chris D. Wheeler </font> </td>
<td> </td>
<td colspan=2>
<p align="right"><font size="2">200,000 </font>
</td>
<td><font size="2"> (1)</font></td>
<td> </td>
<td colspan=3>
<p align="CENTER"><font size="2">100% </font>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">$23.875 </font>
</td>
<td><font size="2"> (2)</font></td>
<td> </td>
<td>
<p align="CENTER"><font size="2">5/25/09 </font>
</td>
<td> </td>
<td>
<p align="right"><font size="2">$470,000 </font>
</td>
<td><font size="2"> (3)</font></td>
<td> </td>
</tr>
<tr valign="bottom">
<td colspan=3> </td>
<td> </td>
<td colspan=2> </td>
<td> </td>
<td> </td>
<td colspan=3> </td>
<td> </td>
<td colspan=4> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
</tr>
</TABLE>
<hr width="100" align="left" noshade size="1">
<font size="3">(1) These options vest in three equal installments on the first,
second and third anniversaries of the May 25, 1999 date of grant.</font>
<p><font size="3">(2) The exercise price was based on the closing price of Gables'
common shares on the May 25, 1999 date of grant.</font></p>
<p><font size="3">(3) The grant date valuation has been calculated using an estimated
fair value of $2.35 per option granted. This fair value was estimated using
the Black-Scholes option pricing model with the following assumptions: risk-free
interest rate of 5.68%, expected term of 7 years, dividend yield of 8.88% and
expected volatility of 25%. No forfeitures were assumed. The actual value, if
any, that may be realized will depend upon the continued employment of the executive
officer holding the option through its vesting period and the excess of the
market price over the exercise price on the date the option is exercised. Accordingly,
there is no assurance that the value realized by the executive officer will
be at or near the value estimated by the Black-Scholes option pricing model,
which is based on assumptions as to the variables of stock price volatility,
future dividend yield, interest rates and holding period.</font></p>
<P><font size="3"><I> Option Exercises and Year-End Holdings</i>.
The following table sets forth the aggregate number of options exercised in
1999 and the value of options held at the end of 1999 by the Chief Executive
Officer and the other named executive officers.</font></P>
<P> </P>
<A NAME="V"></A>
<table cellspacing=0 cellpadding=0>
<tr>
<td valign="TOP" colspan=26>
<p align="CENTER"><b><font size="3">Aggregated Option Exercises in Fiscal
Year 1999<br>
and Fiscal Year-End 1999 Option Values</font></b></p>
</td>
</tr>
<tr>
<td valign="TOP" colspan=26> </td>
</tr>
<tr valign="bottom">
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font>
<div align="center"><font size="1"><b>Name</b></font></div>
</td>
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font><font size="1"></font>
</td>
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font>
<div align="center"><font size="1"><b>Shares<br>
Acquired<br>
On Exercise<br>
(#)</b></font></div>
</td>
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font><font size="1"></font>
</td>
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font>
<div align="center"><font size="1"><b>Value<br>
Realized<br>
($) </b></font></div>
</td>
<td colspan=2 rowspan="3"><font size="1"></font><font size="1"></font><font size="1"></font>
</td>
<td colspan=6>
<div align="center"><font size="1"><b>Number of<br>
Securities<br>
Underlying"<br>
Unexercised<br>
Options<br>
at Fiscal Year-End<br>
(#) </b></font></div>
</td>
<td colspan=2 rowspan="3"><font size="1"></font> <font size="1"></font><font size="1"></font>
</td>
<td colspan=6>
<div align="center"><font size="1"><b>Value of<br>
Unexercised<br>
In-the-Money<br>
Options at<br>
Fiscal Year-End<br>
($) </b></font></div>
</td>
</tr>
<tr>
<td valign="TOP" colspan=6>
<hr noshade size="1">
</td>
<td valign="TOP" colspan=6>
<hr noshade size="1">
</td>
</tr>
<tr valign="bottom">
<td colspan=6>
<div align="center"><font size="1"><b>Exercisable/<br>
Unexercisable </b></font></div>
</td>
<td colspan=6>
<div align="center"><font size="1"><b>Exercisable/<br>
Unexercisable </b></font></div>
</td>
</tr>
<tr>
<td valign="TOP" colspan=2>
<hr noshade size="1">
</td>
<td valign="TOP" colspan=2> </td>
<td valign="TOP" colspan=2>
<hr noshade size="1">
</td>
<td valign="TOP" colspan=2> </td>
<td valign="TOP" colspan=2>
<hr noshade size="1">
</td>
<td valign="TOP" colspan=2> </td>
<td valign="TOP" colspan=6>
<hr noshade size="1">
</td>
<td valign="TOP" colspan=2> </td>
<td valign="TOP" colspan=6>
<hr noshade size="1">
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">Chris D. Wheeler </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2"> 2,100/</font><font size="2">
</font>
</td>
<td>
<div align="left"><font size="2"></font><font size="2">354,200 </font></div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">$ 0/</font><font size="2">
</font>
</td>
<td>
<div align="left"><font size="2">$25,000</font></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">C. Jordan Clark </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2"> 47,900/</font><font size="2"> </font>
</td>
<td>
<div align="left"><font size="2">150,000</font></div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">103,725/</font>
</td>
<td>
<div align="left"><font size="2"> 0</font>
</div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">Michael M. Hefley </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2"> 2,100/</font><font size="2">
</font>
</td>
<td>
<div align="left"><font size="2"> 4,200</font></div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">0/</font>
</td>
<td>
<div align="left"><font size="2"> 0
</font> </div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">Marvin R. Banks, Jr. </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">29,868/</font>
</td>
<td>
<div align="left"><font size="2">100,000 </font> </div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">76,677/</font>
</td>
<td>
<div align="left"><font size="2"> 0</font></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">Marcus E. Bromley </font>
</td>
<td colspan=2>
<p><font size="2">(1) </font>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">253,668/</font>
</td>
<td>
<div align="left"><font size="2"> 0</font></div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">123,002/</font>
</td>
<td>
<div align="left"><font size="2"> N/A</font></div>
</td>
</tr>
<tr valign="bottom">
<td colspan=2>
<p><font size="2">John T. Rippel </font>
</td>
<td colspan=2>
<p><font size="2">(2) </font>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td colspan=2>
<p align="CENTER"><font size="2">0 </font>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">212,000/</font><font size="2"> </font>
</td>
<td>
<div align="left"><font size="2"> 0</font></div>
</td>
<td colspan=2>
<p>
</td>
<td> </td>
<td colspan=4>
<p align="right"><font size="2">124,875/</font><font size="2"> </font>
</td>
<td>
<div align="left"><font size="2"> N/A</font></div>
</td>
</tr>
</TABLE>
<p><font size="3">(1) Pursuant to Mr. Bromley's separation agreement, all stock
options became fully vested as of January 1, 2000. Mr. Bromley will have until
the later of December 31, 2002 or the date upon which he is no longer a member
of the Board of Trustees to exercise his stock options.</font></p>
<p><font size="3">(2) Pursuant to Mr. Rippel's separation agreement, all stock
options became fully vested as of May 21, 1999. Mr. Rippel will have until the
later of May 21, 2002 or the date upon which he is no longer a member of the
Board of Trustees to exercise his stock options.</font></p>
<A NAME="W"></A><P><b><font size="3">Employment Agreements</font></b></P>
<P><font size="3"> Gables currently has employment agreements
with each of Mr. Wheeler, Mr. Hefley, Mr. Clark and Mr. Banks that will continue
in effect through January 1, 2001. The employment agreements automatically renew
for additional one-year terms unless a notice to the contrary effect is given
by either party. Pursuant to their employment agreements, Mr. Wheeler is serving
as Chairman of the Board of Trustees, President and Chief Executive Officer;
Mr. Hefley is serving as Senior Vice President and Chief Operating Officer;
Mr. Clark is serving as Senior Vice President and Chief Investment Officer;
and Mr. Banks is serving as Senior Vice President and Chief Financial Officer.</font></P>
<P><font size="3"> Each employment agreement provides for
an annual review of base salary. In addition, the Compensation Committee may
provide for additional compensation as a bonus, should it determine that such
compensation is appropriate in its discretion based on merit, Gables' financial
performance and other criteria. See "Incentive Compensation Plan" for a more
detailed description of bonus compensation. Pursuant to their employment agreements,
Gables is, in general, required to purchase policies of life insurance for the
benefit of each of the executive officers in the amount of $1,000,000 per policy.
Gables maintains a comprehensive medical plan for the benefit of the executive
officers and that of their immediate families, and pays or reimburses each of
the executive officers for the cost of disability insurance and provides them
with a car allowance currently equal to approximately $600 per month. Each of
the executive officers has agreed to devote substantially all of their working
time to Gables' business. Pursuant to their employment agreements, Gables has
also agreed to indemnify each of the executive officers to the full extent permitted
by law and subject to Gables' charter and bylaws with respect to any actions
commenced against such executive officer in his capacity as an officer or trustee
or former officer or trustee of Gables or any affiliate of Gables for which
he may serve in such capacity, and to advance any expenses incurred by such
executive officers and trustees in defending such actions.</font></P>
<P><font size="3"> If the employment of an executive officer
is terminated during the year (1) by Gables without "good reason" (as defined
in the relevant employment agreement), (2) within six months following a "change
of control" (as defined in the relevant employment agreement), or (3) upon the
occurrence of certain other events, the terminated employee will be entitled
to (a) immediately vest in any outstanding stock options and grants of restricted
shares, and (b) receive a severance payment (the "Severance Amount") equal to
his base salary and the higher of (x) his bonus for the preceding year or (y)
any approved bonus for any period that had closed prior to the date of termination
but had not yet been paid. Upon termination of the employment of an executive
officer by reason of death, his estate will be entitled to receive a payment
equal to the Severance Amount, except that the amount of such benefit shall
be zero if the proceeds of life insurance payable in connection with the employment
agreement equals or exceeds $1,000,000. </font><font size="3">The employment
agreements provide that, if an executive officer is terminated for "good reason"
or voluntarily terminates his employment (other than termination which occurs
within six months following a "change of control"), no Severance Amount will
be payable and such individual will not, without the prior written consent of
the Board of Trustees, directly or indirectly, compete with Gables with respect
to any multifamily apartment residential real estate property development, construction,
acquisition or management activities then undertaken or being considered by
Gables for a period of twelve months following the termination of employment
with Gables.</font></P>
<P><font size="3"> During the term of the employment agreement
and for a period of twelve months following the termination of employment (other
than termination which occurs within six months following a "change of control"),
the executive officer will not, directly or indirectly, (1) solicit or induce
any present or future employee of Gables to accept employment with the executive
officer or any person or entity associated with the executive officer, (2) employ,
or cause any person or entity associated with the executive officer to employ,
any present or future employee of Gables without providing Gables prior written
notice or such proposed employment, or (3) either for himself or for any other
person or entity, compete for or solicit the third party owners with whom Gables
has an existing property management agreement.</font></P>
<A NAME="X"></A><b><font size="3">Separation Agreements</font></b>
<P><font size="3"> Pursuant to an employment agreement
between Gables and Mr. Rippel dated January 1, 1999, Mr. Rippel served as President
and Chief Operating Officer through May 21, 1999, the effective date of his
resignation. Under the terms of a separation agreement between Gables and Mr.
Rippel dated July 1, 1999, Mr. Rippel continued to receive his base salary and
benefits through May 21, 1999 and received a lump sum severance payment of $996,968.
In addition, all of Mr. Rippel's unvested stock options and restricted shares
immediately became vested as of May 21, 1999. Mr. Rippel has until the later
of May 21, 2002 or the date upon which he is no longer a trustee of Gables to
exercise his stock options. </font></P>
<P><font size="3"> Pursuant to the separation agreement,
Gables released Mr. Rippel from the terms of the non-competition provisions
set forth in his employment agreement. Additionally, Gables agreed that, in
the event Mr. Rippel is sued in his capacity as an executive officer or trustee
of Gables, (1) he would be entitled to coverage under the trustees' and officers'
errors and omissions insurance to the extent applicable, and (2) Gables would
indemnify him for all reasonable expenses incurred and any judgements against
him to the extent that Gables, in its discretion, determines that his actions
as an executive officer and trustee were proper.</font></P>
<P><font size="3"> Pursuant to an employment agreement
between Gables and Mr. Bromley dated January 1, 1999, Mr. Bromley served as
Chairman of the Board of Trustees and Chief Executive Officer through April,
1999. Effective April, 1999, Mr. Wheeler succeeded Mr. Bromley in the role of
Chief Executive Officer, at which time Mr. Bromley continued to serve as an
executive officer of Gables in the role of Executive Chairman. Mr. Bromley resigned
as Chairman of the Board of Trustees and Executive Chairman effective January
1, 2000. Under the terms of a separation agreement between Gables and Mr. Bromley
dated January 31, 2000, Mr. Bromley continued to receive his base salary and
benefits through December 31, 1999. In early 2000, Mr. Bromley received a cash
bonus of $168,958 and 9,810 restricted shares for performance during 1999. He
also received a lump sum severance payment of $915,909. In addition, all of
Mr. Bromley's unvested stock options and restricted shares immediately became
vested as of January 1, 2000. Mr. Bromley will have until the later of December
31, 2002 or the date upon which he is no longer a trustee of Gables to exercise
his stock options.</font></P>
<P><font size="3"> Pursuant to the separation agreement,
Gables released Mr. Bromley from the terms of the non-competition provisions
set forth in his employment agreement. Additionally, Gables agreed that, in
the event Mr. Bromley is sued in his capacity as an executive officer or trustee
of Gables, (1) he would be entitled to coverage under the trustees' and officers'
errors and omissions insurance to the extent applicable, and (2) Gables would
indemnify him for all reasonable expenses incurred and any judgements against
him to the extent that Gables, in its discretion, determines that his actions
as an executive officer and trustee were proper.</font></P>
<A NAME="Y"></A><b><font size="3">Share Performance Graph</font></b>
<P><font size="3"> The following graph provides a comparison
of cumulative total shareholder returns among Gables, the Standard & Poor's
("S&P") 500 Index, and the National Association of Real Estate Investment
Trusts, Inc. ("NAREIT") Equity Residential REIT Total Return Index (the "Equity
Residential REIT Index"), an industry index of 22 equity residential REITs (including
Gables). The share performance graph assumes an investment of $100 in each of
Gables and the two indexes on January 1, 1995, and the reinvestment of any dividends.
Equity Residential REITs are defined as those with 75% or more of their gross
invested book value of assets invested directly or indirectly in the equity
ownership of residential real estate. Upon written request, Gables will provide
any shareholder with a list of the REITs included in the Equity Residential
REIT Index. The historical information set forth below is not necessarily indicative
of future performance. Data for the S&P 500 Index and the Equity Residential
REIT Index were provided to Gables by NAREIT.</font></P>
<P ALIGN="CENTER"><font size="3">[GRAPHIC OMITTED]</font></P>
<P ALIGN="CENTER"><font size="3">[The following table was depicted as a line graph
in the printed material.]</font></P>
Jan '95 Dec '95 Dec '96 Dec '97 Dec '98 Dec '99
S&P 500 Index $100.00 $133.95 $164.70 $219.66 $282.44 $341.83
Equity Residential REIT Index $100.00 $117.61 $151.64 $175.96 $160.52 $177.74
Gables Residential Trust $100.00 $117.82 $161.96 $169.24 $153.45 $173.66
<A NAME="Z"></A><font size="3"><b>1994 Share Option Plan</b></font>
<P><font size="3"> Gables adopted the 1994 Share Option
Plan to provide incentives to officers, employees and non-employee trustees.
The Plan provides for the grant of options to purchase a specified number of
common shares or the grant of restricted shares or unrestricted shares. The
total number of options and common shares that may be issued under the Plan
is currently limited to the greater of 2,952,895 or 9% of the sum of (1) the
total number of common shares outstanding at the time of any grant under the
1994 Share Option Plan and (2) the total number of common shares issuable upon
the exchange of common units of limited partnership in the Operating Partnership
that are outstanding at any such time (other than common units held by Gables
or its subsidiaries).</font></P>
<A NAME="AA"></A><b><font size="3">Incentive Compensation Plan</font></b>
<P><font size="3"> Each year, Gables establishes an incentive
compensation plan (the "Incentive Compensation Plan") for certain officers of
Gables. This plan provides for the bonus officers may receive if certain company
and business unit performance objectives established for each individual are
achieved. The bonus paid to each officer is based upon, among other factors,
(1) an evaluation of company performance based on specific quantitative benchmarks
and (2) an evaluation of individual performance based on specific qualitative
criteria. The weight given to such factors varies depending on the officer's
functional and company-wide responsibilities.</font></P>
<A NAME="BB"></A><font size="3"><b>Deferred Compensation Plan</b></font>
<P><font size="3"> Gables has adopted a deferred compensation
plan for key employees pursuant to which executive officers and certain other
key employees may elect to defer receipt of up to 50% of total cash compensation
for any year. All deferred amounts are credited to a participant's deferral
account on the dates such amounts would otherwise have been paid. Credits are
also made to deferral accounts to reflect interest at a rate currently equal
to 8% per year. All deferred amounts, including interest, will be settled in
cash, either in a lump sum or annual installments, following termination of
employment.</font></P>
<P> </P>
<A NAME="CC"></A><div align="center"><font size="3"><b>COMPENSATION COMMITTEE
REPORT ON EXECUTIVE COMPENSATION</b></font> </div>
<P><font size="3"><b>Introduction </b></font></P>
<P><font size="3"><B> </b>Gables' executive compensation
program is intended to attract, retain and reward experienced, highly motivated
executives who contribute to Gables' growth. The Compensation Committee of the
Board of Trustees is currently composed of the four non-employee trustees whose
names appear below this report. The Compensation Committee is responsible for
setting base salaries for executive officers, administering the Incentive Compensation
Plan and determining awards to executive officers under the 1994 Share Option
Plan. In addition to administering executive compensation, the Compensation
Committee also administers the 1994 Share Option Plan, reviews and makes recommendations
regarding benefit plans and reviews from time to time succession planning for
senior management.</font></P>
<P><font size="3"><b>Compensation Committee Procedures During 1999</b></font></P>
<P><font size="3"> The fundamental principles of Gables'
1999 executive compensation program were as follows:</font></P>
<ul>
<li><font size="3">Executive base salaries were kept at amounts approximating
the median levels prevailing within the industry.</font></li>
<P></P>
<li><font size="3">A part of each executive officer's compensation was contingent
on the award of a cash bonus following a year-end review, which bonus was
based on (1) an evaluation of company performance based on specific quantitative
benchmarks and (2) an evaluation of the executive's performance of direct
functional responsibilities as well as company-wide responsibilities.</font></li>
<P></P>
<li><font size="3">Executive officers were given equity-based awards as an
incentive both to perform effectively and to remain with Gables.</font></li>
<P></P>
<li><font size="3">The combination of base salary, annual cash bonus and equity-based
awards was targeted to provide the executive officers with compensation
that was at or approximated the median level for the industry if Gables
achieved a level of performance previously targeted by the Compensation
Committee and at a higher level than the median industry level if Gables'
performance exceeded such target.</font></li>
</ul>
<P><font size="3"> The 1999 executive compensation program
was designed to motivate Gables' executive officers and to align the incentives
of the executive officers with the interest of Gables' shareholders.</font></P>
<P><font size="3"><b>Base Salaries</b></font></P>
<P><font size="3"> As noted above, in administering the
1999 executive compensation program, the Compensation Committee felt that Gables
would be best served if executive base salaries were kept at amounts approximating
the median level prevailing within the industry. In September, 1998, the Compensation
Committee, in its efforts to ensure the foregoing and maintain a competitive
compensation structure, conducted a review of the compensation structure of
other real estate investment trusts within Gables' industry, and compared them
with Gables' existing compensation structure. Based on that review, Gables'
historical growth and financial performance, and each executive officer's performance,
tenure with Gables and its predecessor, and industry experience, the Compensation
Committee established the following 1999 base salaries for the following executive
officers: $325,000 for Mr. Bromley (as Chief Executive Officer), $275,000 for
Mr. Rippel (as President and Chief Operating Officer), $250,000 for Mr. Clark
(as Senior Vice President and Chief Investment Officer), $250,000 for Mr. Wheeler
(as Senior Vice President), and $225,000 for Mr. Banks (as Senior Vice President
and Chief Financial Officer). In April, 1999, Mr. Wheeler succeeded Mr. Bromley
as Chief Executive Officer, and his base salary was increased to $325,000. At
the same time, Mr. Bromley assumed the position of Executive Chairman with a
base salary of $225,000. In May, 1999, following Mr. Rippel's resignation, Mr.
Hefley, who had been serving as a Vice President, was promoted to the position
of Chief Operating Officer, and his base salary was increased from $115,000
to $225,000.</font></P>
<P><font size="3"> As it does each year, following the
completion of 1999, the Compensation Committee conducted another review of executive
base salaries. Specifically, the Committee reviewed separate independent third
party surveys of compensation practices at comparable real estate investment
trusts. Based on that review, the Compensation Committee determined to increase
base salaries for executive officers, effective January 1, 2000, to the following
amounts: $338,000 for Mr. Wheeler, $260,000 for Mr. Clark, and $234,000 each
for Mr. Hefley and Mr. Banks. Each of these executive officers has entered into
an employment agreement with Gables. See "Compensation of Trustees and Executive
Officers - Employment Agreements." While such employment agreements automatically
renew for additional one-year terms unless a notice to the contrary effect is
given by either party, the employment agreements do not provide for annual automatic
increases in base salary.</font></P>
<P><font size="3"><b>Bonuses</b></font></P>
<P><font size="3"> The Committee previously established
an Incentive Compensation Plan that outlined the criteria by which cash bonuses
for service in 1999 would be determined. The Incentive Compensation Plan provided
that certain executive officers could achieve a cash bonus based on the achievement
of a targeted rate of growth in Gables' funds from operations and the Committee's
subjective evaluation of such executive officers' individual performances as
judged against specific goals based on business function and company-wide responsibilities.
Mr. Wheeler's and Mr. Hefley's cash bonuses, however, because they assumed new
positions mid-way through the year<B>,</B> were to be based solely on the Committee's
subjective evaluation of their individual performances.</font></P>
<P><font size="3"> In 2000, the Compensation Committee
applied the criteria it had established in the 1999 Incentive Compensation Plan
by (i) evaluating the growth in Gables' funds from operations, and (ii) evaluating
each executive officer's performance against the criteria established for his
position. Based on such evaluations, the Committee awarded the bonuses described
in "Compensation of Trustees and Executive Officers - Summary Compensation Table."</font></P>
<P><font size="3"> The Compensation Committee has not yet
established the specific terms of the 2000 Incentive Compensation Plan.</font></P>
<P><font size="3"><b>Equity-based Awards</b></font></P>
<P><font size="3"> The Committee continues to believe that
the possibility to earn grants of common shares under the 1994 Share Option
Plan serves as a motivating award and an effective tool for retaining experienced
and talented executives, and also serves to align the incentives of management
with the interest of shareholders. Last year, the Committee announced its intention
to award common shares to certain executive officers following the end of 1999
if Gables achieved certain targeted growth rates in its funds from operations.
Mr. Wheeler and Mr. Hefley, however, because they assumed new positions mid-way
through the year<B>,</B> were eligible to earn common share awards based solely
on the Committee's subjective evaluation of their individual performances. Based
on corporate performance and/or individual performance during 1999, the Committee
awarded a total of 48,310 common shares to executive officers. One-fourth of
each award consisted of unrestricted shares and three-fourths consisted of restricted
shares that vest in three equal annual installments beginning on January 1,
2001. As stated above, the Committee believes the grant of the unrestricted
shares and the benefit from the vesting of the restricted shares will motivate
officers and promote the retention of executives.</font></P>
<P><font size="3"><b>Compensation of Chief Executive Officer</b></font></P>
<P><font size="3"> In determining the compensation of the
Chief Executive Officer, the Compensation Committee applies the same philosophy
and procedures as are applied to other executive officers. As discussed above,
following its September, 1998 review of executive compensation, the Committee
set the 1999 base salary for the Chief Executive Officer position at $325,000.
Mr. Bromley served in that role through April, 1999, and Mr. Wheeler served
in that role for the remainder of 1999. As also discussed above, the Compensation
Committee recently conducted another review of executive base salaries. Based
on that review, the Committee has increased Mr. Wheeler's base salary to $338,000,
effective January 1, 2000.</font></P>
<P><font size="3"> As previously discussed, Mr. Bromley
served as Chief Executive Officer through April, 1999, and as Executive Chairman
for the remainder of 1999. In accordance with the incentive criteria established
in the 1999 Incentive Compensation Plan described above, for his service as
both Chief Executive Officer and Executive Chairman, the Committee awarded Mr.
Bromley a cash bonus of $168,958 and granted him 2,452 unrestricted shares and
7,358 restricted shares. The restricted shares were scheduled to vest in three
equal annual installments beginning January 1, 2001. Pursuant to the terms of
Mr. Bromley's separation agreement, all restricted shares became fully vested
as of the date of grant. See "Compensation of Trustees and Executive Officers
- Separation Agreements."</font></P>
<P><font size="3"> Also as previously discussed, Mr. Wheeler
served as Senior Vice President through April, 1999, and as President and Chief
Executive Officer for the remainder of 1999. In accordance with the incentive
criteria established in the 1999 Incentive Compensation Plan described above,
for his service as Senior Vice President, President and Chief Executive Officer,
the Committee awarded Mr. Wheeler a cash bonus of $325,000 and granted him 3,750
unrestricted shares and 11,250 restricted shares. The restricted shares are
scheduled to vest in three equal annual installments beginning January 1, 2001.
In addition, at the time of his promotion to Chief Executive Officer, Mr. Wheeler
received options to purchase 200,000 common shares at an exercise price of $23.875
per share. These options vest in three equal annual installments beginning on
May 25, 2000.</font></P>
<P><font size="3"><b>Policy with Respect to the $1 Million Deduction Limit</b></font></P>
<P><font size="3"><B> </b>The SEC requires that this report
comment upon Gables' policy with respect to Section 162(m) of the Internal Revenue
Code, which limits the deductibility on Gables' tax return of compensation over
$1 million to any of the named executive officers unless the compensation is
paid pursuant to a plan which is performance-related, non-discretionary and
has been approved by Gables' shareholders. Gables did not pay any compensation
during 1999 that would be subject to Section 162(m). Gables believes that, because
it qualifies as a REIT under the Internal Revenue Code and therefore is not
subject to federal income taxes on its income to the extent distributed, the
payment of compensation that does not satisfy the requirements of Section 162(m)
will not generally affect Gables' net income, although to the extent that compensation
does not qualify for deduction under Section 162(m) a larger portion of shareholder
distributions may be subject to federal income taxation as dividend income rather
than return of capital. Gables does not believe that Section 162(m) will materially
affect the taxability of shareholder distributions, although no assurance can
be given in this regard due to the variety of factors that affect the tax position
of each shareholder. For these reasons, the Compensation Committee's compensation
policy and practices are not directly governed by Section 162(m).</font></P>
<P><font size="3">By the Compensation Committee:</font></P>
<P><font size="3">David M. Holland<br>
</font><font size="3">Lauralee E. Martin<br>
</font><font size="3">John W. McIntyre<br>
</font><font size="3">D. Raymond Riddle</font></P>
<A NAME="DD"></A><b><font size="3">Compensation Committee Interlocks and Insider
Participation</font></b>
<P><font size="3"> The Compensation Committee consists
of Mr. Holland, Ms. Martin, Mr. McIntyre and Mr. Riddle. None of them has served
as an officer of Gables or has any other business relationship or affiliation
with Gables, except his or her service as a trustee.</font></P>
<P> </P>
<A NAME="EE"></A><div align="center"><font size="3"><b>PRINCIPAL AND MANAGEMENT
SHAREHOLDERS</b></font> </div>
<P><font size="3"> The following table shows the amount
of common shares and common units of limited partnership interest in the Operating
Partnership beneficially owned as of February 1, 2000 by:</font></P>
<UL>
<LI><font size="3">each trustee and named executive officer of Gables; </font></LI>
<P></P>
<LI><font size="3">each person who beneficially owns more than 5% of the outstanding
common shares of Gables; and </font></LI>
<P></P>
<LI><font size="3">the trustees and executive officers of Gables as a group.</font></LI>
</UL>
<P><font size="3"> Unless otherwise indicated in the footnotes,
all such interests are owned directly, and the indicated person or entity has
sole voting and investment power. Beneficial ownership includes (1) shares which
could be purchased by the exercise of options within 60 days of February 1,
2000 and (2) common units of limited partnership interests in the Operating
Partnership which may be exchanged for common shares on a one-for-one basis.</font></P>
<A NAME="FF"></A>
<TABLE CELLSPACING=0 CELLPADDING=0 WIDTH=612>
<TR valign="bottom">
<TD COLSPAN=3 HEIGHT=18>
<div align="center"><font size="1"><b>Name and Business Address<br>
of Beneficial Owners</b></font></div>
</TD>
<TD WIDTH="7%" HEIGHT=18><font size="1"></font> </TD>
<TD WIDTH="12%" HEIGHT=18>
<div align="center"><font size="1"><b>Number of <br>
Shares and Units<br>
Beneficially Owned</b></font></div>
</TD>
<TD WIDTH="5%" HEIGHT=18><font size="1"></font> </TD>
<TD WIDTH="15%" HEIGHT=18>
<p align="center"><font size="1"><b>Percent of<br>
All Shares(1)</b></font></p>
</TD>
<TD WIDTH="2%" HEIGHT=18><font size="1"></font> </TD>
<TD WIDTH="26%" HEIGHT=18>
<div align="center"><font size="1"><b>Percent of<br>
All Shares<br>
and Units(2)</b></font></div>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<hr size="1" noshade>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=18> </TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<hr size="1" noshade>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=18> </TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=18>
<hr size="1" noshade>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18> </TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=18>
<hr size="1" noshade>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<P><font size="2"><b><i>Trustees and Executive Officers </i></b></font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=18>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<p>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Chris D. Wheeler (3)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 589,123 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">2.3% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">1.9% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">C. Jordan Clark (4)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 207,366 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Michael M. Hefley (5)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 160,718 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Marvin R. Banks, Jr. (6)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 133,865 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Marcus E. Bromley (7)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 560,332 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">2.3% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">1.8% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">David M. Holland (8)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 26,028 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Lauralee E. Martin (9)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 29,552 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">John W. McIntyre (10)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 27,425 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Mike E. Miles (11)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 4,500 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">James D. Motta </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 0 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">D. Raymond Riddle (12) </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 6,780 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">* </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">John T. Rippel (13) </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 580,347 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">2.3% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">1.9% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> 2859 Paces Ferry Road </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Overlook III, Suite 1450 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Atlanta, Georgia 30339 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">All trustees and executive officers </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">as a group (12 persons)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 2,326,036 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">9.0% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">7.5% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<p>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"><b><i>5% Holders</i></b> </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Stichting Pensioenfonds ABP (14)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 1,435,000 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">5.9% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">4.6% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Oude Lindestraat 70 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Post bus 2889 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> 6401 DL Heerlen </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> The Netherlands </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<p>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">Ohio PERS (15)</font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 1,598,617 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">6.5% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">5.1% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> 277 East Town Street </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Columbus, Ohio 43215 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<p>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2">LaSalle Investment </font><font size="2">Management, Inc.
and </font> <font size="2">LaSalle Investment Management (Securities),
L.P. (16) </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<P align="right"><font size="2"> 2,219,707 </font>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">9.1% </font>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="CENTER"><font size="2">7.1% </font>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> 200 East Randolph Drive </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> Chicago, Illinois 60601 </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
<TR>
<TD VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<P><font size="2"> </font>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=16>
<p>
</TD>
</TR>
</TABLE>
<hr width="100" size="1" align="left" noshade>
<font size="3">* Less than 1%</font>
<P><font size="3">(1) Assumes that all common units held by the person are exchanged
for common shares. The total number of shares outstanding used in calculating
this percentage assumes that none of the common units held by other persons
are exchanged for common shares.</font></P>
<p><font size="3">(2) Assumes that all common units held by the person are exchanged
for common shares. In addition, the total number of shares used in calculating
this percentage assumes that all of the common units outstanding held by all
persons other than Gables are exchanged for common shares.</font></p>
<p><font size="3">(3) Includes 23,000 common shares (including 16,584 restricted
shares), 561,923 common units, and options to purchase 4,200 common shares which
are currently exercisable or exercisable within 60 days of February 1, 2000.</font></p>
<p><font size="3">(4) Includes 41,936 common shares (including 12,574 restricted
shares), 105,165 common units, options to purchase 47,900 common shares which
are currently exercisable, 4,714 common shares owned by Mr. Clark's minor children,
with respect to which common shares Mr. Clark disclaims beneficial ownership,
and 7,651 common shares owned by Mr. Clark's spouse, with respect to which common
shares Mr. Clark disclaims beneficial ownership.</font></p>
<p><font size="3">(5) Includes 14,500 common shares (including 10,375 restricted
shares), 142,018 common units, and 4,200 options to purchase common shares which
are currently exercisable or exercisable within 60 days of February 1, 2000.</font></p>
<p><font size="3">(6) Includes 61,330 common shares (including 10,476 restricted
shares), 42,667 common units, and options to purchase 29,868 common shares which
are currently exercisable.</font></p>
<p><font size="3">(7) Includes 101,998 common shares, 155,009 common units, options
to purchase 253,668 common shares which are currently exercisable, and 49,657
common shares owned by Mr. Bromley's minor children, with respect to which common
shares Mr. Bromley disclaims beneficial ownership. </font></p>
<p><font size="3">(8) Includes 3,028 common shares and options to purchase 23,000
common shares which are currently exercisable. Does not include the approximate
546 common shares which have been credited to Mr. Holland's deferral account
pursuant to Gables' deferred compensation program for non-employee trustees.</font></p>
<p><font size="3">(9) Includes 2,152 common shares, 4,400 common shares held in
Ms. Martin's IRA rollover account, and options to purchase 23,000 common shares
which are currently exercisable.</font></p>
<p><font size="3">(10) Includes 4,425 common shares and options to purchase 23,000
common shares which are currently exercisable. Does not include the approximate
625 common shares which have been credited to Mr. McIntyre's deferral account
pursuant to Gables' deferred compensation program for non-employee trustees.</font></p>
<p><font size="3">(11) Includes 4,500 common shares.</font></p>
<p><font size="3">(12) Includes 1,780 common shares and options to purchase 5,000
common shares which are currently exercisable. Does not include the approximate
548 common shares which have been credited to Mr. Riddle's deferral account
pursuant to Gables' deferred compensation program for non-employee trustees.</font></p>
<p><font size="3">(13) Includes 120,933 common shares, 247,414 common units, and
options to purchase 212,000 common shares which are currently exercisable.</font></p>
<p><font size="3">(14) The indicated ownership is as of September 26, 1996 and
is based solely on a Schedule 13D provided by this entity to Gables. The Schedule
13D indicates that this entity has sole voting and dispositive power with respect
to all of the shares reported.</font></p>
<p><font size="3">(15) The indicated ownership is as of December 31, 1999 and
is based solely on a Schedule 13G provided by this entity to Gables. The Schedule
13G indicates that this entity has sole voting and dispositive power with respect
to all of the shares reported.</font></p>
<p><font size="3">(16) The indicated ownership is as of December 31, 1999 and
is based solely on a Schedule 13G provided by these entities to Gables. The
Schedule 13G indicates that these shares are beneficially owned as a group by
LaSalle Investment Management, Inc. ("LaSalle") and LaSalle Investment Management
(Securities), L.P. ("LIMS"), a limited partnership controlled by LaSalle. According
to the Schedule 13G, (i) LaSalle beneficially owns 593,300 shares (excluding
LIMS' shares), which includes 2,500 shares over which it has sole voting and
dispositive power, and 590,800 shares over which it has shared dispositive power,
and (ii) LIMS beneficially owns 1,626,407 shares (excluding LaSalle's shares),
which includes 412,400 shares over which it has sole voting power, 1,209,907
shares over which it has shared voting power, 403,100 shares over which it has
sole dispositive power, and 1,223,107 shares over which it has shared dispositive
power.</font></p>
<A NAME="GG"></A><b><font size="3">Section 16(a) Beneficial Ownership Reporting
Compliance</font></b>
<P><font size="3"> Section 16(a) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), requires Gables' executive officers
and trustees, and persons who own more than 10% of a registered class of Gables'
equity securities, to file reports of ownership and changes in ownership with
the SEC and the New York Stock Exchange. Officers, trustees and greater than
10% beneficial owners are required by SEC regulations to furnish Gables with
copies of all Section 16(a) forms they file. To Gables' knowledge, based solely
on review of the copies of such reports furnished to Gables and written representations
that no other reports were required during the fiscal year ended December 31,
1999, all Section 16(a) filing requirements applicable to Gables' executive
officers, trustees and greater than 10% beneficial owners were satisfied, except
that Mr. Bromley inadvertently failed to file a Form 4 Statement of Changes
in Beneficial Ownership of Securities, relating to sales of 1,069 common shares
by his minor children. Such sales were reported on the 1999 Form 5 Annual Statement
of Changes in Beneficial Ownership.</font></P>
<P ALIGN="CENTER">
<P ALIGN="CENTER"> </P>
<A NAME="HH"></A>
<div align="center">
<p><font size="3"><b>OTHER MATTERS</b></font></p>
<A NAME="II"></A> <p align="left"><font size="3"><b>Independent Public Accountants</b></font></p>
</div>
<P><font size="3"> The accounting firm of Arthur Andersen
LLP has served as Gables' independent public accountants since Gables' formation
in October, 1993. A representative of Arthur Andersen LLP will be present at
the annual meeting, will be given the opportunity to make a statement if he
or she so desires, and will be available to respond to appropriate questions.</font></P>
<A NAME="JJ"></A><font size="3"><b>Expenses of Solicitation</b></font>
<P><font size="3"> The cost of solicitation of proxies
will be borne by Gables. In an effort to have as large a representation at the
meeting as possible, special solicitation of proxies may, in certain instances,
be made personally or by telephone, telegraph or mail by one or more employees
of Gables. Gables may also reimburse brokers, banks, nominees and other fiduciaries
for postage and reasonable clerical expenses of forwarding the proxy material
to their principals who are beneficial owners of Gables' common shares.</font></P>
<A NAME="KK"></A><font size="3"><b>Shareholder Proposals</b></font>
<P><font size="3"> Any shareholder proposals submitted
pursuant to Exchange Act Rule 14a-8 and intended to be presented at Gables'
2001 annual meeting must be received in writing at Gables' principal executive
offices on or before December 1, 2000 to be eligible for inclusion in the proxy
statement and form of proxy to be distributed by the Board of Trustees in connection
with such meeting.</font></P>
<P><font size="3"> Any shareholder proposals intended to
be presented at Gables' 2001 annual meeting, other than a shareholder proposal
submitted pursuant to Exchange Act Rule 14a-8, must be received in writing at
Gables' principal executive offices no later than March 2, 2001 nor prior to
November 17, 2000, together with all supporting documentation required by Gables'
bylaws. Proxies solicited by the Board of Trustees will confer discretionary
voting authority with respect to these proposals, subject to SEC rules governing
the exercise of this authority.</font></P>
<P align="center"><font size="2"><b>PROXY</b></font></P>
<P align="center"><font size="3"><b>GABLES RESIDENTIAL TRUST</b></font></P>
<P align="center"><font size="2"><b>2859 Paces Ferry Road, Overlook Ill, Suite
1450, Atlanta, GA 30339<br>
Proxy for Common Shares<br>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES</b></font></P>
<P align="left"><font size="3"> The undersigned hereby
appoints Chris D. Wheeler and Marvin R. Banks, Jr., and each of them, proxies
with full power of substitution to vote for and on behalf of the undersigned
at the Annual Meeting of Shareholders of Gables Residential Trust, to be held
at the Vinings Club located in the office building of the Company's headquarters
at 2859 Paces Ferry Road, Atlanta, Georgia, 30339 on Tuesday May 16, 2000 at
9:00 a.m. local time, and at any adjournments thereof. The undersigned hereby
revokes any proxy previously given in connection with such meeting and acknowledges
receipt of the Notice of Annual Meeting of Shareholders and Proxy Statement
and the 1999 Annual Report to Shareholders.</font></P>
<table width="600">
<tr>
<td width="22%">
<div align="center"><font size="3"><b>SEE REVERSE SIDE</b></font></div>
</td>
<td width="54%">
<div align="center"><b>CONTINUED AND TO BE SIGNED ON REVERSE SIDE</b></div>
</td>
<td width="24%">
<div align="center"><font size="3"><b>SEE REVERSE SIDE</b></font></div>
</td>
</tr>
</TABLE>
<p><b><font size="3">GABLES RESIDENTIAL TRUST<br>
c/o Equiserve<br>
P.O. Box 9398<br>
Boston, MA 02205-9398</font></b></p>
<p> </p>
<table width="600">
<tr valign="bottom">
<td width="284"><b><font size="3">Vote by Telephone</font></b></td>
<td width="306"><b>Vote by Internet</b></td>
</tr>
<tr valign="top">
<td width="284"><font size="2">It's fast, convenient, and immediate.<br>
Call Toll-Free on a Touch-Tone Phone<br>
<b>1-877-PRX-VOTE (1-877-779-8683).</b></font></td>
<td width="306"><font size="2">It's fast, convenient, and your vote is immediately
confirmed and posted.</font></td>
</tr>
<tr valign="bottom">
<td width="284"><b><font size="2">Follow these four easy steps:</font></b></td>
<td width="306"><b><font size="2">Follow these four easy steps:</font></b></td>
</tr>
<tr valign="bottom">
<td width="284"><b><font size="2">1. Read the accompanying Proxy Statement
and Proxy Card.</font></b></td>
<td width="306"><b><font size="2">1. Read the accompanying Proxy Statement
and Proxy Card.</font></b></td>
</tr>
<tr valign="bottom">
<td width="284"><b><font size="2">2. Call the toll-free number<br>
1-877-PRX-VOTE (1-877-779-8683).</font></b></td>
<td width="306"><b><font size="2">2. Go to the Website<br>
http://www.eproxyvote.com/gbp</font></b></td>
</tr>
<tr valign="bottom">
<td width="284"><b><font size="2">3. Enter your 14-digit Voter Control Number
located on your Proxy Card above your name.</font></b></td>
<td width="306"><b><font size="2">3. Enter your 14-digit Voter Control Number<br>
located on your Proxy Card above your name.</font></b></td>
</tr>
<tr valign="bottom">
<td width="284"><b><font size="2">4. Follow the recorded instructions.</font></b></td>
<td width="306"><b><font size="2">4. Follow the instructions provided.</font></b></td>
</tr>
<tr>
<td width="284"><font size="2"><b>Your vote is important!</b><br>
Call <b>1-877-PRX-VOTE</b> anytime!</font></td>
<td width="306"><font size="2"><b>Your vote is important!</b><br>
Go to <b>http://www.eproxyvote.com/gbp</b> anytime!</font></td>
</tr>
<tr>
<td colspan="2"><b><font size="2">Do not return your Proxy Card if you are
voting by Telephone or Internet</font></b></td>
</tr>
</TABLE>
<P align="left"><b><font size="3">|X| Please mark votes as in this example.</font></b></P>
<P align="left"><font size="3"><b>This proxy, when properly executed, will be
voted in the manner directed herein by the undersigned shareholder. If no instruction
is indicated with respect to Item 1 below, the undersigned's votes will be cast
in favor of such matter. PLEASE SIGN AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE.</b></font></P>
<P align="left"><font size="3">1. To elect three Class III Trustees to hold office
until the 2003 Annual Meeting of Shareholders and until their successors are duly
elected and qualified and one Class I Trustee to hold office until the 2001
Annual Meeting of Shareholders and until his successor is duly elected and qualified.</font></P>
<P align="left"><font size="3"><b>Class III Nominees: </b>(01) Lauralee E. Martin,
(02) Mike E. Miles and (03) John T. Rippel</font></P>
<P align="left"><font size="3"><b>Class I Nominee:</b> (04) James D. Motta</font></P>
<P align="left"><font size="3"><b>FOR ALL NOMINEES </b> |_| </font></P>
<P align="left"><font size="3"><b>WITHHELD FROM ALL NOMINEES</b> |_|</font></P>
<P align="left"><font size="3">|_|________________________________<br>
<font size="2">For all nominees except as noted above</font></font></P>
<P align="left"><font size="3">2. To consider and act upon any matters incidental
to the foregoing or any other matters which may properly come before the meeting
or any adjournments thereof.</font></P>
<P align="left"><font size="3">MARK HERE FOR ADDRESS CHANGE AND NOTE AT LEFT |_|</font></P>
<P align="left">For joint accounts each owner should sign. Executors, administrators,
trustees, corporate officers and others acting in a representative capacity
should give full title or authority.</P>
<P align="left">Signature:_______________________ Date:______________ </P>
<P align="left">Signature:_______________________ Date:______________ </P>
<p align="left"></p>
<P align="left"> </P>
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