RESULTS OF OPERATIONS
The Company reported net losses of approximately $13,000 (or $.01 per share) and approximately $267,000 (or $.26 per share) for the three and six months ended June 30, 2008, respectively. This is as compared with a net loss of approximately $4,000 (or $.003 per share) and net income of approximately $218,000 (or $.21 per share) for the three and six months ended June 30, 2007, respectively.

As discussed below, total revenues for the three and six months ended June 30, 2008 as compared with the same periods in 2007, increased by approximately $337,000 (13%) and $506,000 (9%), respectively. Total expenses for the three and six months ended June 30, 2008, as compared with the same periods in 2007, increased by approximately $74,000 (2%) and $120,000 (2%), respectively.

REVENUES
Rentals and related revenues for the three and six months ended June 30, 2008 as compared with the same periods in 2007 increased by $19,000 (5%) and $36,000 (5%). The increases were due to increased rental revenue from the Grove Isle property as a result of inflation adjustments as provided in the lease and increased rental revenue from the Monty's retail space.

Restaurant operations:
Summarized statements of income for the Company's Monty's restaurant for the three and six months ended June 30, 2008 and 2007 is presented below:

                            For the three months     For the six months
                               ended June 30,          ended June 30,
                               2008       2007         2008       2007
         Revenues:
Food and Beverage Sales     $1,941,000 $1,645,000   $3,856,000 $3,428,000

         Expenses:
Cost of food and beverage
sold                           506,000    440,000    1,020,000    913,000
Labor and related costs        341,000    335,000      696,000    626,000
Entertainers                    56,000     49,000      111,000    103,000
Other food and beverage
direct costs                    79,000     64,000      149,000    125,000
Other operating costs           93,000     82,000      156,000    155,000
Repairs and maintenance         56,000     57,000       98,000    122,000
Insurance                       76,000     85,000      155,000    172,000
Management and accounting
fees                            22,000    151,000       57,000    232,000
Utilities                       62,000     45,000      128,000     94,000
Rent (as allocated)            205,000    176,000      387,000    343,000
      Total Expenses         1,496,000  1,484,000    2,957,000  2,885,000

Income before depreciation
and minority interest         $445,000   $161,000     $899,000   $543,000

Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)

The following table summarizes the amounts on the table above as a percentage of
sales:

All amounts as a percentage For the three months    For the six months
of sales
                               ended June 30,         ended June 30,
                               2008       2007        2008      2007
         Revenues:
Food and Beverage Sales           100%       100%        100%      100%

         Expenses:
Cost of food and beverage
sold                               26%        27%         27%       27%
Labor and related costs            18%        20%         18%       18%
Entertainers                        3%         3%          3%        3%
Other food and beverage
direct costs                        4%         4%          4%        3%
Other operating costs               5%         5%          4%        5%
Repairs and maintenance             3%         3%          3%        3%
Insurance                           4%         5%          4%        5%
Management fees                     1%         9%          1%        7%
Utilities                           3%         3%          3%        3%
Rent (as allocated)                10%        11%         10%       10%
      Total Expenses               77%        90%         77%       84%

Income before depreciation
and minority interest              23%        10%         23%       16%

For the three and six months ended June 30, 2008 as compared with the same periods in 2007 restaurant sales increased by approximately $296,000 (or 18%) and $428,000 (or 12%), respectively. Comparing these same three and six month periods food sales increased by $139,000 (or 14%) and $212,000 (or 10%) and beverage sales increased by $156,000 (or 23%) and $216,000 (or 16%).

For the three and six months ended June 30, 2008 labor and related costs as a percentage of sales were 18% as compared to 20% and 18% for the three and six months ended June 30, 2007, respectively. This is partially attributable to an increase in less labor intensive beverage sales as a percentage of total sales during the three months ended June 30, 2008.

Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)

Marina operations:
Summarized and combined statements of income for marina operations:
(The Company owns 50% of the Monty's marina and 95% of the Grove Isle marina)


                              For the three months    For the six months
                                 ended June 30,         ended June 30,
                                 2008       2007        2008      2007
      Marina Revenues:
Monty's dockage fees and
related income                  $307,000   $314,000    $639,000  $648,000
Grove Isle marina slip owners
dues and dockage fees            120,000    123,000     241,000   235,000
    Total marina revenues        427,000    437,000     880,000   883,000

      Marina Expenses:
Labor and related costs           64,000     59,000     120,000   117,000
Insurance                         49,000     50,000      97,000   100,000
Management fees                   19,000     19,000      39,000    36,000
Utilities, net of tenant
reimbursement                      2,000     17,000     (6,000)    34,000
Rent and bay bottom lease
expense                           59,000     60,000     122,000   122,000
Repairs and maintenance           33,000     52,000      71,000    79,000
Other                             27,000     39,000      47,000    59,000
    Total marina expenses        253,000    296,000     490,000   547,000

Income before depreciation
and minority interest           $174,000   $141,000    $390,000  $336,000

Marina revenue for the three and six months ended June 30, 2008 as compared to the same periods in 2007 remained consistent. Marina expenses for the three and six months ended June 30, 2008 as compared to the same periods in 2007 decreased by approximately $43,000 (or 14%) and $57,000 (or 10%) primarily due to decreased utilities expenses as a result of increased electrical pass through charges to marina tenants.

Management's Discussion and Analysis of Financial
Condition and Results of Operations (continued)

Spa operations:
Below are summarized statements of income for Grove Isle spa operations. The
Company owns 50% of the Grove Isle Spa with the other 50% owned by an affiliate
of the Noble House Resorts, the tenant of the Grove Isle Resort:

                              Three
                              months
                              ended    Three months    Six months     Six months
  Summarized statements of   June 30, ended June 30, ended June 30, ended June 30,
  income of spa operations     2008        2007           2008           2007
         Revenues:
Services provided            $188,000       $155,000       $397,000       $352,000
Membership and other           13,000         13,000         27,000         27,000
Total spa revenues            201,000        168,000        424,000        379,000
         Expenses:
Cost of sales (commissions
and other)                     54,000         39,000        116,000        102,000
Salaries, wages and related    59,000         68,000        121,000        142,000
Other operating expenses       54,000         71,000         88,000        122,000
Management and
administrative fees            13,000          9,000         23,000         25,000
Other non-operating expenses   12,000         19,000         24,000         27,000
Total Expenses                192,000        206,000        372,000        418,000

Income (loss) before
interest, depreciation and
minority interest              $9,000      ($38,000)        $52,000      ($39,000)

Spa revenues for the three and six months ended June 30, 2008 as compared with the same periods in 2007 increased by $33,000 (or 20%) and $45,000 (or 12%). The spa is benefiting from increased occupancy and overall improved operations at the Grove Isle resort during 2008.

Net (loss) gain from investments in marketable securities:
Net loss from investments in marketable securities for the three and six months ended June 30 2008 was approximately $27,000 and $215,000, respectively, as compared with a net gain from investments in marketable securities of approximately $124,000 and $250,000 for the same comparable periods in 2007. For further details refer to Note 4 to Condensed Consolidated Financial Statements (unaudited).

Net income from other investments:
Net income from other investments for the three and six months ended June 30, 2008 was approximately $126,000 and $158,000, respectively, as compared with net income of approximately $365,000 and $742,000 for the same comparable periods in 2007. The decrease in income was primarily from a non-recurring 2007 cash distribution from an investment in a bank and in a partnership owning diversified businesses. For further details refer to Note 5 to Condensed Consolidated Financial Statements (unaudited).

Interest, dividend and other income:
Interest and dividend income for the three and six months ended June 30, 2008 was approximately $248,000 and $336,000, respectively, as compared with approximately $104,000 and $244,000, for the same periods in 2007. The increase from last year in the three and six month periods of $144,000 (or 139%) and $92,000 (or 38%), respectively was primarily the result of real estate commission earned by Courtland Houston, Inc. of approximately $168,000 in June 2008.

EXPENSES
Expenses for rental and other properties for the three and six months ended June 30, 2008 were consistent with that for the three and six months ended June 30, 2007.

For comparisons of all food and beverage related expenses refer to Restaurant Operations (above) summarized statement of income for Monty's restaurant.

For comparisons of all marina related expenses refer to Marina Operations
(above) for summarized and combined statements of income for marina operations.

For comparisons of all spa related expenses refer to Spa Operations (above) for summarized statements of income for spa operations.

Adviser's base fee for the three and six months ended June 30, 2008 as compared to the same periods in 2007 increased by $30,000 (or 13%) and $60,000 (or 13%). This was the result of the amendment to the Advisory Agreement effective January 1, 2008, as previously reported.

Professional fees for the three and six months ended June 30, 2008 as compared to the same periods in 2007 decreased by $29,000 (or 31%) and $48,000 (or 27%). This was due to non-recurring restaurant consulting fees of approximately $28,000 paid in May 2007.

Interest expense for the three and six months ended June 30, 2008 as compared to the same periods in 2007 decreased by $73,000 (or 18%) and $120,000 (or 15%). This was primarily due to lower interest rates in 2008 versus 2007.

Minority partner's interest in operating (gains) losses for the three and six months ended June 30, 2008 as compared to the same periods in 2007 increased by $200,000 (or 160%) and $258,000 (or 294%). This was primarily the result of increased operating gains from the Monty's operations and from the Grove Isle Spa operations.

EFFECT OF INFLATION:
Inflation affects the costs of operating and maintaining the Company's investments. In addition, rentals under certain leases are based in part on the lessee's sales and tend to increase with inflation, and certain leases provide for periodic adjustments according to changes in predetermined price indices.

LIQUIDITY, CAPITAL EXPENDITURE REQUIREMENTS AND CAPITAL RESOURCES The Company's material commitments in 2008 primarily consist of maturities of debt obligations of approximately $4 million and commitments to fund private capital investments of approximately $1.3 million due upon demand. The funds necessary to meet these obligations are expected to be available from the proceeds of sales of properties or investments, refinancing, distributions from investments and available cash. The majority of maturing debt obligations for 2008 is a note payable to the Company's 49% owned affiliate, T.G.I.F. Texas, Inc. ("TGIF") of approximately $3.7 million. This amount is due on demand. The obligation due to TGIF will be paid with funds available from distributions from the Company's investment in TGIF and from available cash.

Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

MATERIAL COMPONENTS OF CASH FLOWS
For the six months ended June 30, 2008, net cash provided by operating activities was approximately $1.1 million. This was primarily due to improved cash from operations.

For the six months ended June 30, 2008, net cash provided by investing activities was approximately $838,000. This consisted primarily of approximately $2.2 million in net proceeds from sales of marketable securities and collections of notes receivable of approximately $500,000, partially offset by increased investments in marketable securities of $1.1 million, contributions to other investments of $485,000 and improvements to the Monty's property of approximately $476,000.

For the six months ended June 30, 2008, net cash used in financing activities was approximately $1.3 million consisting of $2 million restricted cash relating to the loan modification discussed in Note 7. $1 million of this restricted cash was contributed by the Company 50% partner in the Monty's property. Repayments of loans accounted for the other $337,000 cash used in financing activities.