RESULTS OF OPERATIONS

For the three and six months ended June 30, 2012, the Company reported net income of approximately $165,000 ($.16 per share) and $234,000 ($.23 per share), respectively. For the three and six months ended June 30, 2011, the Company reported a net loss of approximately $182,000 ($.18 per share) and $388,000 ($.38 per share), respectively.

Total revenues for the six months ended June 30, 2012 as compared with the same period in 2011, increased by approximately $142,000 or 3%. Total revenues for the three months ended June 30, 2012 as compared with the same period in 2011, increased by approximately $64,000 or 2%.

Total expenses for the six months ended June 30, 2012, as compared with the same periods in 2011, decreased by approximately $191,000 or 3%. Total expenses for the three months ended June 30, 2012, as compared with the same periods in 2011, increased by approximately $43,000 or 2%.

REVENUES

Rentals and related revenues for the three and six months ended June 30, 2012 as compared with the same period in 2011 increased by $23,000 (or 5%) and $34,000 (or 4%), respectively. This was 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 and six months ended June 30, 2012 and 2011 is presented below:

                                        For the three months               For the six months
                                           ended June 30,                    ended June 30,
                                       2012             2011             2012             2011
           Revenues:
Food and Beverage Sales             $ 1,611,000      $ 1,608,000      $ 3,357,000      $ 3,296,000

            Expenses:
Cost of food and beverage sold          448,000          448,000          967,000          922,000
Labor and related costs                 310,000          292,000          627,000          590,000
Entertainers                             50,000           48,000           99,000           96,000
Other food and beverage direct
costs                                    77,000           64,000          155,000          131,000
Other operating costs                    65,000           86,000          128,000          176,000
Repairs and maintenance                  72,000           35,000          119,000           80,000
Insurance                                79,000           81,000          159,000          157,000
Management and accounting fees           35,000           26,000           70,000           64,000
Utilities                                58,000           65,000          113,000          128,000
Rent (as allocated)                     170,000          170,000          334,000          328,000
         Total Expenses               1,364,000        1,315,000        2,771,000        2,672,000

Income before depreciation and
non controlling interest            $   247,000      $   293,000      $   586,000      $   624,000

Amounts above are presented as a percentage of sales below:

                                        For the three months                For the six months
                                           ended June 30,                     ended June 30,
                                       2012              2011             2012              2011
           Revenues:
Food and Beverage Sales                     100 %             100 %            100 %             100 %

           Expenses:
Cost of food and beverage sold               28 %              28 %             29 %              28 %
Labor and related costs                      19 %              18 %             19 %              18 %
Entertainers                                  3 %               3 %              3 %               3 %
Other food and beverage direct
costs                                         5 %               4 %              5 %               4 %
Other operating costs                         4 %               5 %              4 %               5 %
Repairs and maintenance                       4 %               2 %              3 %               2 %
Insurance                                     5 %               5 %              5 %               5 %
Management fees                               2 %               2 %              2 %               2 %
Utilities                                     4 %               4 %              3 %               4 %
Rent (as allocated)                          11 %              11 %             10 %              10 %
         Total Expenses                      85 %              82 %             83 %              81 %
Income before depreciation and
non-controlling interest                     15 %              18 %             17 %              19 %

For the six months ended June 30, 2012 as compared with the same period in 2011, restaurant sales increased by approximately $61,000 (2%), with food sales increasing by $57,000 (or 3%) and beverage sales increasing $4,000 (or less than 1%).

For the three months ended June 30, 2012 as compared with the same period in 2011, restaurant sales increased by $3,000 (less than 1%), with food sales increasing by $14,000 (1%) and beverage sales decreasing $11,000 (2%).

For the three and six months ended June 30, 2012 as compared with the same periods in 2011, total restaurant expenses increased by $49,000 (4%) and $99,000 (4%), respectively. This was primarily due to higher food costs and increased labor costs.

Marina operations:

Summarized and combined statements of income for marina operations for the three and six months ended June 30, 2012 and 2011: (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,
                                       2012             2011            2012            2011
        Marina Revenues:
Monty's dockage fees and related
income                              $   293,000      $  290,000      $  579,000      $  591,000
Grove Isle marina slip owners
dues and dockage fees                   126,000         113,000         252,000         224,000
     Total marina revenues              419,000         403,000         831,000         815,000

        Marina Expenses:
Labor and related costs                  66,000          60,000         130,000         131,000
Insurance                                21,000          21,000          47,000          43,000
Management fees                          18,000          18,000          36,000          36,000
Utilities, net of tenant
reimbursement                           (11,000 )        (2,000 )       (21,000 )       (18,000 )
Rent and bay bottom lease
expense                                  56,000          54,000         110,000         110,000
Repairs and maintenance                  24,000          54,000          57,000          95,000
Other                                    30,000          19,000          58,000          46,000
     Total marina expenses              204,000         224,000         417,000         443,000

Income before depreciation and
non controlling interest            $   215,000      $  179,000      $  414,000      $  372,000

Total marina revenues for the three and six months ended June 30, 2012 as compared to the same periods in 2011 increased by $16,000 (or 4%) and $16,000 (or 2%). This was primarily due to a rate increased in the Grove Isle Marina slip owner's dues.

Total marina expenses for the three and six months ended June 30, 2012 as compared to the same periods in 2011 decreased by $20,000 (or 9%) and $26,000 (or 6%). This was primarily due to decreased repairs and maintenance expense at the Monty's marina.

Spa operations:

Below are summarized statements of income for Grove Spa operations for the three and six months ended June 30, 2012 and 2011. The Company owns 50% of the Grove Isle Spa with the other 50% owned by an affiliate of Grand Heritage, the tenant of the Grove Isle Resort:

                                    Three months       Three months        Six months         Six months
Summarized statements of income      ended June         ended June         ended June         ended June
       of spa operations              30, 2012           30, 2011           30, 2012           30, 2011
           Revenues:
Services provided                   $      97,000      $      78,000      $     201,000      $     172,000
Membership and other                       22,000             20,000             39,000             38,000
Total spa revenues                        119,000             98,000            240,000            210,000
           Expenses:
Cost of sales (commissions and
other)                                     23,000             16,000             44,000             34,000
Salaries, wages and related                39,000             33,000             77,000             65,000
Other operating expenses                   54,000             47,000            112,000             91,000
Management and administrative
fees                                        3,000              5,000              8,000             11,000
Other non-operating expenses                6,000              6,000              9,000              9,000
Total Expenses                            125,000            107,000            250,000            210,000

Income (loss) before interest,
depreciation and non-controlling
interest                            $      (6,000 )    $      (9,000 )    $     (10,000 )    $         -0-

Spa revenues for the three and six months ended June 30, 2012 as compared with the same period in 2011 increased by $21,000 (or 22%) and $30,000 (or 14%), respectively. This came at the expense of higher promotional costs which was the main reason Spa expenses for the three and six months ended June 30, 2012 as compared with the same period in 2011 increased by $18,000 (or 17%) and $40,000 (or 19%).

Net realized and unrealized gain (loss) from investments in marketable securities:

Net realized and unrealized gain from investments in marketable securities for the three and six months ended June 30, 2012 was approximately $5,000 and $97,000, respectively. This is as compared to net realized and unrealized (loss) gain from investments in marketable securities for the three and six months ended June 30, 2011 of approximately ($30,000) and $32,000, respectively. 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, 2012 was approximately $269,000 and $316,000, respectively. This is as compared to net income from other investments for the three and six months ended June 30, 2011 of $36,000 and $45,000, respectively. For further details refer to Note 5 to Condensed Consolidated Financial Statements (unaudited).

Realized loss from interest rate swap contract:

In conjunction with amendment of the Bayshore bank loan in March 2011 the interest rate swap contract liability was paid down by $198,400 (in the same proportion as the amount of the loan principal paid down). As a result, the Company reclassified a previously unrealized loss of $198,400 from accumulated other comprehensive income to realized loss on interest rate swap contract within the condensed consolidated statements of comprehensive income for the three months ended March 31, 2011. There was no realized loss from the interest rate swap contract for the three and six months ended June 30, 2012.

Interest, dividend and other income:

Interest, dividend and other income for the six months ended June 30, 2012 was approximately $69,000, as compared to income of approximately $126,000 for the six months ended June 30, 2011. This decrease of $57,000 (or 45%) was primarily due to a decrease of service related income from Courtland Houston of $50,000.

EXPENSES

Expenses for rental and other properties for the three and six months ended June 30, 2012 were $185,000 and $300,000, respectively. This is as compared to the same expenses of approximately $166,000 and $348,000 for the three and six months ended June 30, 2011. The increase in the three month comparable periods of $19,000 (or 11%) was due to increased rent expense from adjustments to Monty's rent due to the City of Miami which the Company is contesting. The decrease in the six month comparable periods of $48,000 (or 14%) was primarily due to decreased repairs and maintenance expenses.

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.

Depreciation and amortization expense for the three and six months ended June 30, 2012 compared to the same periods in 2011 decreased by $14,000 (or 6%) and $172,000 (or 28%), respectively. The decrease in the six month comparable periods was primarily due to the non-recurring amortization of loan costs associated with the Monty's loan modification completed in March 2011.

General and administrative expense for the three and six months ended June 30, 2012 compared to the same periods in 2011 increased by approximately $21,000 (or 26%) and $17,000 (or 10%), respectively. This was primarily due to the abandonment and write off of land held for development with a cost basis of $28,000.

Professional fees and expenses for the three and six months ended June 30, 2012 compared to the same periods in 2011 decreased by $29,000 (or 27%) and $70,000 (or 36%), respectively. These changes were primarily due to lower legal costs relating to ongoing Grove Isle litigation.

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 primarily consist of maturities of debt obligations of approximately $3.4 million in 2012 and contributions committed to other investments of approximately $871,000 due upon demand. The funds necessary to meet these obligations are expected to come from the proceeds from the sales of properties or investments, bank loans, refinancing of existing bank loans, distributions from investments and available cash.

In June 2012 the Company renewed and modified the existing bank mortgage note payable on the Grove Isle property with the same lender. The renewal and modification extends the maturity date to June 30, 2016 and calls for the same monthly principal payments of $10,000 plus interest calculated at the one-month LIBOR rate plus 3% with an interest rate floor 4.5%.

Included in the maturing debt obligations for 2012 is a note payable to the Company's 49% owned affiliate, T.G.I.F. Texas, Inc. ("TGIF") of approximately $3.2 million due on demand. The obligation due to TGIF will be paid with funds available from distributions from its investment in TGIF and from available cash.

MATERIAL COMPONENTS OF CASH FLOWS

For the six months ended June 30, 2012, net cash provided by operating activities was approximately $399,000. This was primarily from the cash flow provided by the Company's rental operations.

For the six months ended June 30, 2012, net cash provided by investing activities was approximately $382,000. This consisted primarily of approximately $700,000 in net proceeds from sales of marketable securities and distributions from other investment of $495,000. These sources of funds were partially offset by purchases of marketable securities of $513,000, contributions to other investments of $169,000 and additions to fixed assets of $127,000.

For the six months ended June 30, 2012, net cash used in financing activities was approximately $228,000 consisting solely of loan principal repayments.