As stated previously in earlier communications, rental income has dropped from EC$ 3,312,495 in the same period in 2008 to EC$ 2,979,944 in the first half year of 2009.

The drop in rental income over the first half year of 2009 was caused by necessary vacancy for reconstruction purposes, as well by unexpected cancellations of rental contracts related to worsening economic conditions. Grenreal also granted its tenants a one time waiver on the rent increase with the Consumer Price Index and Passengers Flow Index to assist them in this difficult economic climate.

Operating and general costs, although at a higher level than 2008 due to professionalization of the organization of the Company as well as the ECSE listing, were in line with budgeted cost. Interest costs were lower due to successful reorganization of the existing financing.

Occupancy levels and rental income are expected to improve significantly in the fourth quarter of 2009 after the completion of the construction works on the connection between the two properties. Vacant units which were affected by this work are expected to be occupied and new units created as a result of the construction are also expected to be rented.

Even more encouraging, is the outlook for the 2009-2010 cruise season. Based on the information available, the number of passenger are at least at the same level as last season. This means that Grenada has been able to attract similar numbers of cruise passengers as last year at a time when many other destinations are seeing declines.

Based on the foregoing, the management of Grenreal is confident that, although the Company faces pressure on its operational income in 2009, the overall financial position of the Company remains solid. Management believes that Grenreal is well positioned to weather the present difficult economic environment and to continue to perform well in the years ahead.