A Year-End Look at the Activities of Portfolio Property Management Global, LLC. Shining Success During Challenging Times

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1 March 2010 G L O B A L GLOBAL PORTFOLIO PROPERTY MANAGEMENT GLOBAL, LLC Portfolio Property Management Global, LLC State of the Business 2010 A Year-End Look at the Activities of Portfolio Property Management Global, LLC Shining Success During Challenging Times Our fourth full year of operation in 2009 was as exciting and challenging as the previous three. Looking back, what could have turned out to be a challenging year actually proved to be another solid year of company growth and fine performance. Of course given the upheaval in the global economy last year, we are grateful for this, but we also know and we don t want to sound boastful here -- that PPM-Global s shining success is more than just fate. We feel our performance is a result of hard work. We have created the foundation of a very solid company anchored by its talent and propelled by a desire to provide superior service to all our clients. As we review some of the highlights of last year, I hope to show you why I believe this to be the case and give you some insight into where we see our business headed in the months ahead. Established in 2005, PPM-Global is one of the largest minority owned commercial real estate property management firms in the country. Since its establishment, PPM-Global has experienced exponential portfolio growth with a diverse portfolio including a mix of office, retail, multi-family and light industrial property types. As we did in 2008, we were able to attract additional highly experienced professionals to our ranks, which we feel is a testament to the business we have created. We also saw great successes within our management portfolio, which continues to expand in several of our key markets and now stands at 19 properties totaling more than five million square feet in seven states. And, we were able to continue our track record of excellence in property management, resulting in recognition from industry publications as well as organizations such as Building and Office Managers Association (BOMA). We are proud of our accomplishments in 2009 and look forward to our continued progress. Sincerely, PORTFOLIO PROPERTY MANAGEMENT GLOBAL, LLC Yamato Office Center Marsha L. Bass, President Portfolio Property Management Global, LLC 1001Yamato Road Suite 103 Boca Raton, FL Phone Fax

2 PPM-Global s Management Portfolio Solid Results and Expansion In 2009, PPM-Global not only experienced growth in the size of the portfolio that it manages, but as a provider of best-in-class services. We accomplished this by upgrading our monthly financial package to include relevant marketing and leasing information, we enhanced our budget package by developing a property management plan along with the financial information, and we instituted continued technology upgrades with the implementation of AwareManager jxt. These new enhancements and upgrades, along with the day-to-day refinement of the existing services we deliver, position our company to deliver unrivaled services. Last year we also added several significant assets to our property management portfolio, notably in North Carolina. In 2009, our North Carolina portfolio for MayfieldGentry Realty Advisors, LLC was expanded in the Research Triangle by the addition of Venture Center, a 475,000 square foot office complex in Raleigh. Set on North Carolina State University s 1,130 acre Centennial Campus, Venture Center s state-of-the-art buildings offer easy access to university amenities and promote crosscollaboration. The United States Government (USDA, APHIS, and GSA) is the largest tenant. We also expanded in Durham and Cary with the addition of the BGK Group s portfolio of Class A commercial office properties including three office buildings totaling just over 300,000 square feet. The BGK Group is one of the largest and most respected private real estate companies in the country and PPM-Global is delighted to have been selected to manage its North Carolina assets. By carefully evaluating the owner s needs and tailoring services based on the properties, the transition process for BGK s North Carolina s properties was flawless and resulted in significant cost savings. We ultimately reduced recoverable expense by $0.76 per square foot for the portfolio by year s end and improved the efficiency of the properties day-to-day operations. Our management portfolio in the state now tops 1.65 million square feet. Nationally, PPM-Global increased its office portfolio by 781,185 square feet or more than 29% over 2008 and the overall portfolio increased 18% for all property types last year. The Future is Now Leadership in Energy and Green Initiatives PPM-Global s VP of Engineering John Guardiola Is On the Forefront of Change During 2009, Vice President of Engineering John Guardiola worked diligently to formalize PPM-Global s commitment to sustainability and provide leadership in energy and green initiatives. His extensive engineering experience and continual quest to enhance and improve all properties in our portfolio make him a perfect fit for this progressive endeavor. Recently, John talked in a roundtable with the PPM- Global Management Team about the new Corporate Sustainability Program: Team: John, during 2009 you earned a designation as a LEED AP (Leadership in Energy and Environmental Design Accredited Professional) through the United States Green Building Council, (USGBC) of which PPM-Global is a national member. What steps did you take to achieve that? Guardiola: I achieved the designation as a LEED AP through a combination of previous professional experience and expertise in the fields of engineering, construction, design and property management, along with advanced continuing education courses and extensive study through the USGBC. I am proficient in the areas of sustainability, design, environmental quality, materials and resources, energy and atmosphere, and water efficiency.

3 Team: You also assumed the responsibility as Director of PPM-Global s newly created Corporate Sustainability Program. What s involved in the program? Guardiola: The program involves the use of LEED standards and principles to create corporate sustainability and energy policies for all PPM-Global properties. Using the LEED Registered Project Checklist, we have begun to benchmark every property in our portfolio for LEED and Energy Star compliance. I also appointed seasoned professionals on our team from various levels of the company, including property management, engineering, and accounting, to serve on our new Sustainability Council. Several of our council members are also candidates for or have already achieved USGBC certification, including our Director of Construction, John Druskinis and Engineering Supervisor Michael Hubbard, who has LEED Green Associate status. Team: How does implementation of the Corporate Sustainability Program help PPM-Global provide value to its clients? Guardiola: While the introduction of energy efficiency programs, whether they include equipment upgrades or other technology may have certain upfront costs, over the long term clients see real benefits. Immediate and long term savings in energy costs, efficient building systems and tenant comfort are just some of the value added rewards. The property is also more attractive to investors and prospective tenants and demonstrates that our owners and clients are partners with PPM-Global as good corporate citizens working together to protect our global environment. Team: What are some of the long range plans PPM-Global has regarding Green Building initiatives? Guardiola: As a result of successes we achieved in 2009, PPM-Global launched a series of multi-year technology optimization initiatives to reduce our consumption of building utilities such as electricity, water, natural gas, and steam. This will be accomplished by completing mechanical system upgrades such as BMS upgrades, VFD installs, and lighting retrofits. We will also continue to perform property energy audits and building recommissioning as required throughout our national portfolio. An example of our success is the 18 month plan at our 1 million square foot One Detroit Center property in Detroit, Michigan. Working in partnership with the Owner, PPM-Global and national technology contract service providers, we commenced energy efficient upgrades to the building s major mechanical systems. The upgrades performed include a complete state-of-the-art, web based, building management system (BMS), replacement of all major fan system motor controllers to VFDs, and a complete energy audit to optimize energy consumption and sustainability best practices. The outstanding result was a first year savings (Dec Dec. 2009) of approximately 24% on the overall cost of electrical, steam and domestic water utilities. One Detroit Center is now a candidate for the prestigious Energy Star Certification. Team: You have developed a reputation for wearing several company hats at once. How do you do it? Guardiola: I really like my job and I enjoy creating, implementing and developing all aspects of Property Management. It is truly rewarding to be able to share my knowledge with other members of our company team and achieve positive results at our properties. I become energized by working to meet our goals and seeing results.

4 PPM-Global s Executive Team is Results Oriented Still Raising the Talent Bar One key measure of our success is an ability to attract the best and the brightest our industry has to offer. Last year we continued to strengthen our ranks and deepen our bench of experience and expertise by adding several more key personnel as well as promoting strong performers from within the ranks. Sean Beers, CCIM, CAM, joined our team in spring 2009 as Property Manager of Yamato Office Center in Boca Raton FL, a Class A office building, totaling 173,468 square feet and Publix at St. Andrews property, a 65,271 square foot retail mall in Port St. Lucie, FL. Prior to joining PPM-Global, Sean worked as a Project and Property Manager for the Lund Capital Group, LLC where he managed a portfolio of over $100 Million in investment land and rental properties in FL, CO, and IL. While there, he also worked as an Asset Manager where he was responsible for managing an entire income producing portfolio with assets totaling over $60 million in value. Sean graduated with high honors from the University of Illinois at Urbana-Champaign with a major in Finance and a concentration in Real Estate and has a Certified Commercial Investment Member (CCIM) designation and Community Association Manager (CAM) designation for the state of Florida. Rhonda Panciro, PMC, joined our Las Vegas, Nevada office in fall 2009 as Senior Property Manager and Leasing Broker. Rhonda oversees our West Coast portfolio in Nevada, Arizona and California and is responsible for business development in the region. Prior to joining PPM-Global, Rhonda worked as Vice President of the Office Division for Colliers International where she was responsible for landlord and tenant representation for both leasing and project sales, creating and implementing marketing plans, lease preparation and negotiation, space planning and tenant improvement supervision. A highly respected real estate professional in Las Vegas with exemplary experience, Rhonda s ability to broker transactions in Nevada will also give our team greater flexibility and our clients, additional value. Rhonda received her Real Estate Broker s license from Ellsberg School of Real Estate in Las Vegas, NV, and also holds a Property Management Certificate. Winter Lofaro joined PPM-Global in late fall 2009 as the Property Manager for Crossroads Corporate Park in Cary, North Carolina. The property consists of four free standing Class A office buildings totaling 390,542 of rentable square feet situated on acres. Additionally, Winter also manages our BGK properties in Cary and Durham, North Carolina, including One Harrison Park, a 55,855 square foot office building in Cary, Headquarters Park, a two-building Class A office park consisting of 147,010 square feet, and the Meridian Building, a 104,179 square foot Class A office building, both located in Durham. Prior to joining PPM-Global, Winter worked as a Property Manager and was responsible for managing a commercial real estate portfolio consisting of a 205,000 square foot Class A high-rise in Downtown Durham, and office buildings in Chapel Hill, NC totaling 450,000 square feet. Winter is an active member of the BOMA Raleigh-Durham Chapter and is currently a candidate for Certified Property Manager designation (CPM) from the Institute of Real Estate Management. And Antoine Dennard, following his tenure of outstanding service as Assistant Property Manager for PPM-Global in Detroit at One Detroit Center and Grand Park Centre, was promoted and appointed Property Manager at our Charlotte, North Carolina office and relocated to our southeast region. Antoine is now responsible for our South Tryon Square and 200 South Tryon properties and brings valuable experience to his new position.

5 PPM-GLOBAL s Use of State-of-the-Art Systems Facilitate Efficiency Early in the life of the company we realized that using the right technology could help make our evolving business model more efficient and growing pains less painful. In 2006, after reviewing several alternatives, we selected Yardi Systems Voyager TM program to create a centralized system to manage property management and accounting. We found the system to be invaluable in streamlining property level information that is often needed by our clients in readable report format, often taking days or weeks out of the report-building process and freeing up staff time for other essential functions. Three years later, we are so pleased with the performance of the system that we ve expanded its use to include automatic processing and tracking of purchase orders. Late last year, PPM-Global was profiled as a Client Success Story by Yardi for our experience with the system across our nationwide portfolio. Yardi interviewed our Senior Property Accountant Michael Donahue, who stated: Instead of spending days creating financial reports from spreadsheets, with Voyager we can just request a report, hit Print, and deliver it to our auditors in minutes *and+ with our business spread from California and Michigan to Florida and Virginia, the fact that we can log in and access our data from anywhere at any time is a huge advantage. PPM-Global was also featured in the summer 2009 issue of the Database International Group s (DIG) Properties and Facilities Newsletter for its use of AwareManager jxt. Those experiences have shown us that technology matters and we continue to keep up to date with the latest technological developments in an effort to keep PPM-Global on the leading edge of the property management discipline. Awards, Achievements and Accolades: Seven TOBY Awards and more. Since our last State of the Business report, we were honored with five more regional The Building of the Year (TOBY) Awards from BOMA. Adding them to TOBY s received by PPM-Global managed properties in 2008, we have received a total of seven awards. These awards are highly respected in our industry because they recognize quality in the buildings themselves and excellence in their management. The physical presentation of the building, tenant relations, energy conservation, community impact, training of onsite personnel, emergency preparedness and security, environmental and regulatory factors are all examined as part of the judging process. The honorees were: One Detroit Center, awarded Office Building of the Year in the Over 1 Million Square Foot category. ODC also won a TOBY award in Kudos to Director of Property Management Danny Appiah and Assistant Property Manager Danielle Parker. Grand Park Centre, also in Detroit, Michigan, was awarded Office Building of the Year in the 100,000 to 249,999 Square Feet category. Grand Park also won in the Renovated Building category in Director of Property Management Danny Appiah is recognized again for his skilled management of the property. Crossroads Corporate Park in Raleigh, North Carolina, received a first time award for Office Building of the Year in the Suburban Low-Rise Office Park category in 2009 and repeat honors in the same category in February, Winter Lofaro manages the property. Yamato Office Center in Boca Raton, Florida, also received first time honors as Office Building of the Year in the Suburban Low-Rise Office Park category. Sean Beers manages the property.

6 Our talented staff also continued to add credentials and expertise to their professional and educational accomplishments. Several members of our team earned special certifications or licensure during 2009, including: Sean Beers, Property Manager at Yamato in Boca Raton, Florida, who recently received his CAM (Community Association Manager) designation for the State of Florida. Additionally, Sean received his CCIM (Certified Commercial Investment Member) designation in John Bridges, Chief Operating Officer, received his CPM (Certified Property Manager) designation, from the Institute of Real Estate Management (IREM). John Guardiola, Vice President of Engineering, received his LEED AP (LEED Accredited Professional) certification from the U.S. Green Building Council (USGBC). Michael Hubbard, One Detroit Center s Engineering Supervisor, received his LEED Green Associate designation from the USGBC. Danielle Parker, Assistant Property Manager at One Detroit Center, received her Real Estate Salesperson License for the State of Michigan. We appreciate the dedication and commitment to excellence demonstrated by all of these staff. I was also humbled by an industry accolade during 2009 when I was recognized as a Woman of Influence in a recent article in the November/December 2009 issue of Real Estate Forum magazine. The article highlighted a group of the real estate industry s most accomplished women professionals. All of these awards, achievements and accolades are a testament to the hard work and dedication of the PPM-Global team and our continued commitment to excellence in property management. The Year Ahead As the commercial real estate sector lags the overall economy, often by many months, if not years, we expect to continue to see opportunities to expand our management portfolio. In addition to providing leading edge property management services to investors seeking to realize cost savings and value enhancement, we also expect more banks to begin the process of working out their REO problems this year by preparing more properties for eventual disposition into an upwardly improving market. Launched last year, PPM-Global s REO group provides a full complement of property level due diligence and analysis, including expert engineering and financial assessments to help lenders quickly and effectively deal with decisions involving commercial properties that come back to them through foreclosure or default. We also expect to see opportunities to assist more investors in analyzing their property management needs and implement practical, cost efficient programs to improve the value of their assets over time in preparation for refinancing, recapitalization or sale. Like others in the real estate sector, we see an inevitable bifurcation of the commercial market between assets perceived to be obsolete because of their physical or operational characteristics and those that are perceived to be modern. Unlike most in our industry, we see this as more than an issue of whether a property is green or not. Properties, especially those managed by enlightened and experienced property professionals can be green without necessarily having a green designation and that s where PPM-Global can help a property excel. If you would like to hear more about how we do that, we will be happy to talk to you in further detail.