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

GOLF TRUST OF AMERICA, INC.’S BOARD PREPARES PLAN OF LIQUIDATION; REPORTS 3RD QUARTER FFO OF 56 CENTS PER SHARE AND RECORDS $25.3 MILLION WRITE-DOWN OF CERTAIN ASSETS TO ESTIMATED FAIR VALUE Charleston, SC, November 15, 2000 -- Golf Trust of America, Inc. (AMEX:GTA), a self-administered real estate investment trust (REIT), reported that on November 6, 2000, its Board of Directors authorized GTA’s management to prepare a draft plan of liquidation and proxy statement to be presented to the Board for further consideration and, if approved, to be submitted to a vote of its stockholders and limited partners. In addition to approving several sales of golf courses in the ordinary course of business, the Board authorized the Company to enter into non-binding or binding letters of intent and definitive agreements for the sale of the balance of the Company’s golf courses, conditioned upon approval of the plan of liquidation. The Board also authorized management to seek the consent of third parties as necessary under the Company’s existing contracts to complete these transactions. W. Bradley Blair, II, Chairman and Chief Executive Officer, stated, “After months of deliberations, evaluations, professional consultation and negotiation, Golf Trust’s Board is pleased to have progressed through the strategic alternatives consideration process to the point of developing a plan of liquidation that will seek to maximize shareholder value. This process has evolved as the Board closely monitored the capital market and golf market conditions, including the near to mid-term chances of such markets’ recovery or change. The Board has concluded that it is in the best interest of our shareholders to develop a plan for the disposition of Golf Trust’s assets in an orderly and efficient manner. The Company’s management is working with its attorneys, accountants and financial advisors to draft a plan of liquidation to present to the Board of Directors for approval, and once approved, to shareholders by means of a proxy statement for their approval. The plan of liquidation also requires the consent of the limited partners in the Company’s affiliated operating limited partnership.” 3RD Quarter Financial Results Third quarter Funds From Operations (FFO) per share was $0.56, compared to $0.65 per share for the quarter ended September 30, 1999. FFO totaled $7.2 million versus $8.5 million for the quarter ended September 30, 2000 and 1999, respectively. The decrease in FFO for the quarter was primarily due to lost rental revenue from the golf courses in default under their Participating Leases, expenses incurred as a result of the litigation associated with these defaults and expenses incurred in the strategic alternatives process. For the quarter ended September 30, 2000, total revenue decreased 2.1% to $13.8 million in 2000 from $14.1 million for the same quarter last year. For the nine months ended September 30, 2000, total revenues were $42.7 million, an increase of 4.0% over $41.1 million of total revenues for the same period last year primarily due to a full nine months of rental revenue for the two golf courses purchased in May and July of 1999. For the third quarter of 2000, same-store golf course revenues increased 1% and same-store rounds decreased 2%, in comparison to the same period in 1999, which resulted in a 3% 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. As a result of information compiled in the strategic alternatives process and in accordance with Statement of Financial Accounting Standards (SFAS) No. 121 under Generally Accepted Accounting Principles (GAAP), GTA recorded a $25.3 million adjustment in the third quarter to write-down certain assets to their estimated fair value. Net loss from operations after this adjustment and before minority interest and extraordinary items for the quarter totaled $22.0 million, or $1.82 per common diluted share, versus net income from operations of $4.7 million, or $0.31 per common diluted share, for the quarter ended September 30, 1999, a decrease of $2.13 on a per common diluted share basis. This adjustment also resulted in a net loss from operations on a year-to-date basis. Net loss from operations after this adjustment and before minority interest and extraordinary items for the nine months ended September 30, 2000, totaled $13.2 million, or $1.25 per common diluted share, versus $13.8 million or $0.98 per common diluted share for the same period last year, a decrease of $2.23 on a per common diluted share basis. Commenting on the Company’s performance and the quarter, Mr. Blair stated, “From an operations viewpoint, the strategic alternatives analysis process has materially limited our ability to operate the Company’s business on a going concern basis. This has been reflected, in part, by our results for the last two quarters. We have entered into agreements to regain control of the operation of all but one of our courses that have been in litigation. These efforts should facilitate the plan of liquidation, if it is approved by the Board and shareholders. Additionally, in comtemplation of the plan of liquidation, we have evaluated the assets in our portfolio, which lead to the $25.3 million write-down of certain assets to their estimated fair value. This is primarily the result of viewing these assets on a short-term rather than long-term basis.” As previously reported on September 12, 2000, the Company's Board of Directors declared quarterly dividend distributions of $0.44 per common share and $0.58 per Series A preferred share for the quarter ended September 30, 2000 to stockholders of record on September 30, 2000. These dividends were paid on October 16, 2000. Golf Trust of America, Inc., with headquarters in Charleston, South Carolina, is a self-administered REIT formed to consolidate the ownership of golf courses in the United States. 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, the timing and competition for golf course acquisitions and dispositions, the availability of equity and debt financing, interest rates and other risk factors as outlined in the Company's SEC reports.