Annual Meeting of Owners January 24, 2012

Financial Overview

Income Statement 2011 Bud 2011 Act Var to Bud 2012 Bud Revenue $ 3,312,220 $ 3,303,193 $ (9,027) $ 3,519,264 Utilities $ 504,567 $ 500,060 $ 4,507 $ 508,014 Main Contract $ 139,259 $ 138,119 $ 1,141 $ 162,116 Main Sup & Rep $ 170,071 $ 231,639 $ (61,568) $ 200,647 General & Admin $ 205,904 $ 215,018 $ (9,114) $ 214,795 Ins and Taxes $ 101,045 $ 95,387 $ 5,658 $ 101,068 Payroll $ 1,682,872 $ 1,772,711 $ (89,839) $ 1,788,667 Oper Exp $ 2,803,718 $ 2,952,934 $ (149,216) $ 2,975,307

Income Statement Summary 2011 Bud 2011 Act Var to Bud 2012 Bud Revenue $ 3,312,220 $ 3,303,193 $ (9,027) $ 3,519,264 Oper Exp $ 2,803,718 $ 2,952,934 $ (149,216) $ 2,975,307 Reserve Trans $ 496,116 $ 496,116 $ 0 $ 496,116 Total Exp $ 3,299,834 $ 3,449,050 $ (149,216) $ 3,471,423 Income/Loss $ 12,386 $ (145,856) $ (158,242) $ 47,841

Maintenance Supplies & Repairs Safety Fire Protection Stairwell Door Seals $5,500 Trash Chute Fire Dampers $3,155 Inspection Repairs $8,925 Elevator Inspections 5 Year Load Test $6,580 Trash Removal Dumpster Repairs $1,705 Compactor Repair $1,949 Chute Repair $1,950

Maintenance Supplies & Repairs Controlled Access Office Security Systems $4,711 Camera Replacements $3,460 Landscape Replacement Heat and Cold Damage $3,100 Generator Repairs $3,556 Plumbing Repairs Repairs on water system $8,715

Operating Payroll Security Payroll Dallas Sheriff Addition $11,520 2010 Payroll $6,509 Under Budgeted $27,272 Concierge Payroll 2010 Payroll $6,155 Under Budgeted $34,398

General Administrative Legal Expense $7,000 IT Support $3000

Operational Cash Analysis Total Cash Collection $3,384,524 Transfer to Reserves -$419,103 Cash Disbursements -$2,884,090 Operational Cash Balance 12/31/2012 $81,331

Reserve Account

Reserves as of December 31, 2011 2011 Beginning Balance $755,761 Contribution & Interest $419,103 Expenses $-521,707 Borrowed from Reserves $45,155 Ending Balance Dec 2011 $608,002

Reserve Expenses for 2011 Exterior Maintenance Project $413,974 Reserve Study $3,600 Stairwells and East Tower Lights $25,859 Insurance Claim $57,740 Renovation Plans $6,983 HVAC Replacements $13,551 TOTAL $521,707

Reserves as of January 23, 2012 Beginning Balance 01/01/12 $608,002 Contribution: Nov & Dec $82,686 Exterior Maintenance Final -$79,414 Current Balance 01/23/12 $611,274 Current Owed to the Reserves $96,965

Delinquent Accounts

Delinquent Accounts January 24, 2011 29 Accounts $65,761

Delinquent Loses 8 Mortgage forclosures in 2011 $25,686 Doubtful accounts in collections $27,000 Red Rock Collections 12 month rolling $76,000

Accomplishments/Challenges in 2011

Caulking before

Caulking After

RTC Waterproofing Crew

Fire and Saftey

Fire and Saftey

Freeze of 2011

LED’s in East Tower Hallways 40 to 2 Watts

Energy Efficient Lighting in Stairwells 50 to 25 Watts

How Many Work Orders in 2011? 1726 197 7000+

How Many Work Orders in 2011? a. 1726 not including PM’s

b. 197 Move In’s and Out’s we have facilitated

c. 7000+ # of packages we process each year

300 1. Number of Pigeons we removed from the garage?

300 1. Number of pigeons we removed from the garage? 2. Number of violations we sent for noise disturbances?

300 1. Number of pigeons we removed from the garage? 2. Number of violations we sent for noise disturbances? 3. Number of gallons of paint we used last year?

300 1. Number of pigeons we removed from the garage? 2. Number of violations we sent for noise disturbances? 3. Number of gallons of paint we used last year?

One of our most difficult task?

Pigeons

How did we do it?

Teamwork!

We are proud to serve you!