3. RESULTS OF OPERATIONS FOR MONTY’S RESTAURANT, MARINA AND OFFICE/RETAIL PROPERTY, COCONUT GROVE, FLORIDA

6 Months Ended

Jun. 30, 2011

3. RESULTS OF OPERATIONS FOR MONTY’S RESTAURANT, MARINA AND OFFICE/RETAIL PROPERTY, COCONUT GROVE, FLORIDA

The Company, through two 50%-owned entities, Bayshore Landing, LLC (“Landing”) and Bayshore Rawbar, LLC (“Rawbar”), (collectively, “Bayshore”) owns a restaurant, office/retail and marina property located in Coconut Grove (Miami), Florida known as Monty’s (the “Monty’s Property”).

In March 2011 Bayshore amended its loan agreement with the same bank. Effective March 11, 2011 the principal balance of the loan was paid down by approximately $1.6 million to $8.8 million with the proceeds of the restricted cash balance and the remaining restricted cash balances were released by the bank. The loan is to be repaid in monthly installments of approximately $81,500 including principal and interest. Interest remains at the same terms, and the swap agreement remains in place for the reduced balance. The note is due, with a balloon payment on August 19, 2020. The agreement with the bank contains certain covenants with which the Company is in compliance. In conjunction with this loan amendment Bayshore was required to pay down the interest rate swap contract liability by $198,400, as discussed in Note 7 below.

Summarized combined statements of income for Landing and Rawbar for the three and six months ended June 30, 2011 and 2010 are presented below (Note: the Company’s ownership percentage in these operations is 50%):

Summarized Combined statements of income Bayshore Landing, LLC and Bayshore Rawbar, LLC	For the three months ended June 30, 2011		For the three months ended June 30, 2010		For the six months ended June 30, 2011			For the six months ended June 30, 2010

Revenues:
Food and Beverage Sales	$	1,608,000	$	1,650,000	$	3,296,000		$	3,144,000
Marina dockage and related		271,000		315,000		557,000			619,000
Retail/mall rental and related		147,000		144,000		294,000			296,000
Total Revenues		2,026,000		2,109,000		4,147,000			4,059,000

Expenses:
Cost of food and beverage sold		448,000		437,000		922,000			854,000
Labor and related costs		292,000		308,000		590,000			626,000
Entertainers		48,000		49,000		96,000			95,000
Other food and beverage related costs		150,000		158,000		307,000			295,000
Other operating costs		28,000		61,000		70,000			131,000
Repairs and maintenance		108,000		68,000		214,000			121,000
Insurance		130,000		143,000		254,000			285,000
Management fees		76,000		65,000		160,000			126,000
Utilities		70,000		72,000		124,000			125,000
Ground rent		224,000		210,000		446,000			419,000
Interest		166,000		218,000		367,000			424,000
Depreciation and amortization (a)		168,000		177,000		483,000			360,000
Realized loss on interest rate swap (Note 7)		—		—		198,000			—
Total Expenses		1,908,000		1,966,000		4,231,000			3,861,000

Net income (loss)	$	118,000	$	143,000	$	(84,000	)	$	198,000

(a)

Includes approximately $145,000 loan costs which were fully amortized in conjunction with the Monty’s loan modification in March 2011.