Beautifully engraved certificate from the Glenborough Realty Trust Incorporated issued in 1996. This historic document was printed by the American Banknote Company and has an ornate border around it with a vignette of the Statue of Liberty with New York City and the World Trade Center in the background. This item has the printed signatures of the company's president and secretary and is over 10 years old. Glenborough Realty Trust Incorporated (NYSE: GLB, GLBprA) is a self-administered and self-managed REIT with a diversified portfolio of 135 properties including office, industrial, multifamily and retail investments. The portfolio is comprised of approximately 22.3 million square feet in 22 states, in 27 major metropolitan markets. Formed as a public company in December 1995 by consolidating eight partnerships and Glenborough Corporation, a nationwide property management and investment firm, Glenborough Realty Trust Incorporated benefits from 20 years of real estate ownership and management experience. The Company's UPREIT structure provides flexibility to acquire properties or portfolios of properties by exchanging partnership units for these assets in a non-taxable transaction. Strategy and Diversification As an entrepreneurial and opportunistic real estate company, the REIT and its predecessor companies have successfully owned and managed diversified real estate since 1978. Glenborough maintains a diversified strategy and conservative capital structure while seeking to increase shareholder value through accretive acquisitions and developments, greater property value and cash flow from proactive asset management and asset redeployment through timely dispositions. Diversification, once considered a contrarian strategy in the public real estate markets, has now won widespread acceptance and creates a competitive advantage. More portfolio flexibility - the Company can adjust its real estate portfolio mix both by product type and geographic location to take advantage of changing market conditions and opportunities. Less portfolio risk - a varied asset base can provide more stability. Greater interest in UPREIT units - tax-motivated sellers have sought Glenborough's diversified stock in exchange for properties because of our diversification. Less competition for acquisition opportunities - Glenborough can purchase diversified portfolios with less competition and provides sellers with a bulk sale option. Acquisitions Glenborough's acquisition program has been successful because of the Company's ability to source attractive opportunities, to quickly and thoroughly underwrite properties, and to solve complex issues for sellers. The Company has earned a reputation as straightforward, for dealing fairly and up front with sellers. The Company acquires both directly and through joint ventures with capital partners. The Acquisition Page summarizes Glenborough's activity to date. Development Real estate is a cyclical business and as such there are times to build and times to refrain from building. To keep development overhead low and to provide the flexibility to increase or stop development efforts, Glenborough develops through a series of joint ventures with local developers. Developers are selected for their local market expertise and knowledge as well as their reputation and financial capabilities. Many of the Company's development partners have contributed properties to Glenborough and, therefore, have a vested interest in the Company through the UPREIT units they own. The Company has a variety of office, industrial and multifamily projects under way throughout the country. Property Management Glenborough and its predecessor companies have owed and managed a diversified portfolio of properties since 1978. The core of the Company is an outstanding and proactive property management team divided into Commercial and Multifamily groups each with regional and local management offices throughout the country. The key to increasing property performance and cash flow is to hire top quality management employees and to empower them with the tools and training needed to succeed. Hiring high quality management employees: Successful property managers have strong industry experience, in-depth local market knowledge, a customer-driven attitude, an action-oriented personality, and a thorough attention to detail. Well-defined goals: Together, property managers and senior management set goals to increase rental revenues, maintain high occupancy rates and tenant retention rates, to control operating expenses, and to increase property cash flows and values. Goals and performance are measured against internal and industry benchmarks and best practices. Property management employees are rewarded and incentivised with a variety of programs designed to align the interest of the employee and the shareholder. Comprehensive employee training and empowerment: New employees go through a comprehensive training program both in the field and in the home office. Throughout the year, on-going training takes place with a mix of both formal sessions and mentoring programs designed to keep employees up to date on both company and industry changes. Clear and well-documented procedures empower property managers to make decisions and take action while allowing for proper controls. Quality information systems: Glenborough has always been committed to providing quality information for both property managers and senior management. The Information Systems Department provides each office with timely and accurate information and tools necessary to effectively complete their mission. Glenborough continues to upgrade efficiency through the expansion of information systems. Acquisition and ownership transition: Property management transition teams work with the acquisitions group to create a smooth ownership transition for our customers. Property managers are given needed tools and information to be effective from the first day of ownership. Comprehensive planning: Detailed market surveys, marketing plans, property strategies, leasing targets and guidelines, capital improvement plans and budgets are prepared for each property annually and updated during the year as needed. These tools ensure clear direction and goal attainment. Asset Redeployment Glenborough continually reviews the portfolio with the intent to 1) upgrade the portfolio quality and age, 2) decrease management costs by trading smaller investments for larger ones, 3) provide additional liquidity, 4) replace lower income growth properties with higher growth potential properties, and 5) change portfolio weighting by property type or geographic region based on changes in market conditions determined by company research. The disposition team identifies possible sale properties using both the property managers who provide in-market experience and the research analysts who supply economic indicators, trends and demographics.