The Company’s GAAP book value per common share is negative $(7.25) per share, or $(379.3) million at September 30, 2012. Of the negative book value, approximately negative $(488.7) million, or $(9.27) per common share, is attributable to the Company’s commercial real estate finance business, substantially all of which is financed by the Company’s CDOs. While the assets and liabilities in the CDOs are consolidated on the Company’s books for GAAP purposes, the Company’s exposure to loss is limited to its investment in each CDO. The negative book value of the commercial real estate finance business is primarily attributable to impairments and mark-to-market adjustments made to the loan and CMBS investments financed in the CDOs in excess of the Company’s equity investment in each CDO. Due to the non-recourse nature of the CDOs, ultimately, any loss in excess of the CDO liabilities outstanding will not be realized by the Company.NEW BUSINESS STRATEGY Following a strategic review process which was completed in the second quarter of 2012, the Company’s Board of Directors concluded that the most attractive alternative available to the Company is to remain independent and to focus on building value by deploying the Company's capital into income-producing net leased real estate focused on office and industrial properties. On July 1, 2012, Gordon F. DuGan became the Company’s Chief Executive Officer to lead the new business effort. An operational review of the Company's existing assets commenced with the goal of reducing the current cost structure, further strengthening the balance sheet and determining which legacy assets and operations complement the new investment strategy. On September 28, 2012, the Company held an investor call presenting the findings of the operational review and highlighting the new go-forward business strategy for the Company. Presentation materials for the September 28, 2012 investor presentation can be found on the Company’s website ( www.gkk.com) in the investor relations section under “Supplemental Reports”. The Company underlined its main operational goal, which is to develop recurring cash flows from the investment of the Company’s cash into a portfolio of net lease investments, which are expected to be primarily office and industrial properties, simplifying and streamlining the business, reducing management, general and administrative costs, managing liquidity for investment and ultimately growing the equity base of the Company. Commencing with the Bank of America Portfolio, which is expected to close at the end of November 2012 and is more fully described below, investments initially will be funded from existing financial resources. Subject to market conditions, the Company expects to seek to raise additional debt and/or equity capital to support further growth.