2001 YEAR END SUMMARY

George Smith: "2001 was our best year ever in terms of volume and revenues. This was in spite of the disruptions in the capital markets, deals being harder to structure, lenders being more conservative, the softening in the economy that turned recessionary, the slowing of new construction and problems in certain product types and geographic areas. Some of the highlights included: (1) GSP's average loan size jumped to $9,500,000; (2) $243,000,000 in Fannie Mae loans through our correspondent relationship with ARCS Commercial Mortgage. (3) With the dramatic decline at the short end of the yield curve, we placed Jumbo Home loans for the first time in many years with a unique program for loans up to $2,500,000. As a result, many of our clients are now enjoying rates in the 3% range. (4) CMBS continues to be a "core product" where we are able to manage a competitive bid process. We placed conduit transactions with 13 different originators. With the maturing of this market, originators have developed different cultures, personalities and characteristics. We expect a favorable fixed rate environment for the foreseeable future with all-in mortgage rates continuing to cycle in the 7.00% range. (5) Southern California benefits from a broad base of regional, national and international banks, S&L's, Thrift and Loans and Credit Unions--many of whom lend the old fashioned way with easier processing and documentation. We returned to a traditional yield curve with 5 year T's at 50 bps below the 10's. As such, we placed a significant number of 5 year fixed rate loans (usually with a floating rate rollover) and flexible prepayment provisions. We also placed floating rate loans priced over a variety of short terms indices. (6) As always, we arranged several significant construction loans, structured transactions with a combination of senior/mezz, equity for "value added" purchases and complex joint ventures. I am pleased with the breadth of financings that we arranged, the continued growth and maturing of our production team and the record year for our branch offices in Orange County and Anchorage (Pacific Northwest). Finally, I want to thank our many clients including borrowers and lenders along with our many friends from the related real estate professions for their continuing support of the A-T Medical Research Foundation through their attendance at our Annual Fall Luncheon and the Executive Luncheon Series which begins in the Spring."