Golf Trust of America, Inc.
(AMEX: GTA)

Golf Trust Announces 2nd Quarter Earnings Company Lowers Expectations For FFO Growth in Year 2000 Charleston, SC, August 14, 2000 -- Golf Trust of America, Inc. (AMEX:GTA), a self-administered real estate investment trust (REIT), today reported second quarter Funds From Operations (FFO) per share of $0.65, compared to $0.64 per share for the quarter ended June 30, 1999. FFO totaled $8.4 million for both the second quarter of 2000 and 1999, and total revenue increased 5.8% to $14.5 million in 2000 from $13.7 million for the same quarter last year. For the six months ended June 30, 2000, FFO totaled $17.1 million, or $1.32 per share, versus $16.6 million, or $1.28 per share, for the same period in 1999, an increase of 3.1% on a per common share basis; and total revenues equaled $28.9 million, an increase of 7.0% over the $27.0 million of total revenues for the same period last year. Income from operations before minority interest and extraordinary items for the quarter totaled $4.3 million, or $0.29 per common diluted share, versus $4.9 million, or $0.32 per common diluted share, for the quarter ended June 30, 1999, a decrease of 9.3% on a per common share basis. Income from operations before minority interest and extraordinary items for the six months ended June 30, 2000, totaled $8.9 million, or $0.59 per common diluted share, versus $9.2 million or $0.67 per common diluted share for the same period last year, a decrease of 11.9% on a per common diluted share basis. For the second quarter of 2000, same-store golf course revenues increased 2% and same-store rounds declined 2%, in comparison to the same period in 1999, which resulted in a 4% increase in same-store revenue per round. Same store rounds and revenues are computed for courses owned for the full quarter in 1999 and 2000. W. Bradley Blair, II, Chairman and Chief Executive Officer, stated, “We are pleased with the progress we have made in our strategic review process to maximize shareholder value and expect a resolution by year end. The essential, yet prolonged, nature of this review, the protracted resolution of certain default lessees, and higher interest costs have impacted FFO growth in the second quarter, and are anticipated to impact the remainder of 2000. The cumulative effect is a revised forecast of our FFO in 2000 of $2.45 to $2.50 per share, a four to six percent decline from 1999.” As previously reported on June 14, 2000, the Company's Board of Directors declared a second quarter dividend of $.44 to shareholders of record on June 30, 2000. These dividends were paid on July 14, 2000. Golf Trust of America, Inc., with headquarters in Charleston, South Carolina, is a self-administered REIT formed to capitalize on the consolidation opportunities in the ownership of golf courses in the United States. The Company’s business strategy is to own high quality golf courses and lease them to qualified third party lessees, including affiliates of the sellers. The Company currently has interest in 47 courses throughout the United States including the following states: Alabama, California, Florida, Georgia, Illinois, Kansas, Kentucky, Michigan, Missouri, Nebraska, New Mexico, North Carolina, Ohio, South Carolina, Texas, Virginia and West Virginia. Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors including general economic conditions, competition for golf course acquisitions, the availability of equity and debt financing, interest rates and other risk factors as outlined in the Company's SEC reports, including the prospectus dated November 4, 1997 and the annual report, as amended on Form 10-K dated March 31, 1999.