Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

RESULTS OF OPERATIONS

The Company reported net income of approximately $69,000 ($.07 per share) for the three months ended March 31, 2012. For the three months ended March 31, 2011 the Company reported a net loss of approximately $207,000 ($.20 per share).

As discussed further below, total revenues for the three months ended March 31, 2012 as compared with the same period in 2011, increased by approximately $78,000 or 3%. Total expenses for the three months ended March 31, 2012, as compared with the same period in 2011, decreased by approximately $234,000 or 8%.

REVENUES

Rentals and related revenues for the three months ended March 31, 2012 as compared with the same period in 2011 increased by $12,000 ( or 3%), primarily as a result of an inflation adjustment in rent due from the tenant at Grove Isle.

Restaurant operations:

Summarized statements of income for the Company's Monty's restaurant for the three months ended March 31, 2012 and 2011 is presented below: