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Sault Ste. Marie

Station Mall revenue increased by 3% in 2007 due mainly to increased rental rates when compared to 2006. Occupancy is currently at 97%, reflecting a slight decrease from 98% when compared to the previous year. We see a very challenging year ahead with respect to leasing to prospective retail tenants in consideration of the possibility of reduced growth in consumer spending.

Revenue from our commercial office building, Station Tower, decreased 4% in 2007 in comparison to 2006. The decrease is mainly due to tenant turnover in the year with occupancy remaining at 95% at the end of the year when compared to 2006.

Occupancy remained at 100% in 2007 for the 289 Bay Street office building with revenue up 5% over 2006 as a result of increased recoverable common costs.

The Station '49' apartment building is currently 99% leased with increased revenue of 3% in 2007 over 2006 due to increases in rental rates. Occupancy usually fluctuates throughout the year due to typical tenant turnover.

Revenue from our hotel, the Holiday Inn, increased by 2% in 2007, which is respectable in consideration of the difficult tourism market which has been negatively affected by both the strong Canadian dollar and the weak economy in the latter half of 2007. The existing lease expires in April 2009, however the tenant does have a renewal right. We are presently in discussion with our tenant regarding reviewing the long-term options with respect to this lease.

 Station Mall

 Station Tower

 Bruce & Bay Building

 Station '49'

 Holiday Inn