Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? January 26, 2009

1. Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? January 26, 2009

2. Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? Moderator • Bidjaan Kassam – CBRE Hotels Dallas, VP Panelists • Perry Molubhai – Atlantic Hotel Group, Managing Director • David Copeland – CBRE Retail Services Dallas, VP • Steve Holt – One World Bank, CEO • Karam Ali – Alliance Originator

3. Commercial Real Estate and Hotel Industry: What is the Smart Money Saying and Doing? • Hotel Market 2009 Forecast • Hotel Owner Perspective • Retail Market Overview • Lending in 2009 • Investing in Alliances • Question and Answer

4. Bidjaan KassamVice PresidentCB Richard Ellis HotelsDallas, Texas HOTEL MARKET 2009 FORECAST

8. Perry MolubhaiManaging DirectorAtlantic Hotel Group HOTEL OWNER PERSPECTIVE

9. David CopelandVice PresidentCB Richard Ellis Retail ServicesDallas, Texas RETAIL MARKET OVERVIEW

11. Retail Bankruptcies

12. New Grocers

13. REGIONAL ISMAILI BUSINESS CONFERENCE One World Bank 2009 Steve Holt, President and C.E.O.

14. The views expressed are those of Steve Holt and should not be attributed to One World Bank.

15. What can Uncle Sam do for you . . . TARP, CPP, Tax Relief and the alphabet soup The views expressed are those of Steve Holt and should not be attributed to One World Bank.

16. “Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” – Groucho Marx The views expressed are those of Steve Holt and should not be attributed to One World Bank.

17. What’s the Good News? The views expressed are those of Steve Holt and should not be attributed to One World Bank.

18. Panera Is One Restaurant Looking For Positive Things In 2009 January 22, 2009 “Panera Bread Co., the chain of 1,250 bakery-cafes, plans to take advantage of its debt-free balance sheet and the U.S. real estate slump to open as many as two locations a week in 2009, said Chief Executive Ronald Shaich.” http://www.stltoday.com/stltoday/business/stories.nsf/developmenteconomy/story/53728525613A661C8625753F0016CFBC?OpenDocument The views expressed are those of Steve Holt and should not be attributed to One World Bank.

19. Consumer Prices Fall Again In December January 16, 2009 Consumer Prices Fall For Third Month In December - For the third month in a row consumer prices declined for the slowest increase of prices in 50 years. The CPI (consumer price index) fell .7% in December. Excluding energy and food, which have the greatest impact on the number, the CPI was nearly flat. So I’m assuming that the continued drop in gas contributed to the decline. While this does not mean we’re out of the woods, it does bode well for those with money to spend. Greater purchasing power can often spur additional consumption, particularly if the expected stimulus plan goes into effect in the first quarter. The views expressed are those of Steve Holt and should not be attributed to One World Bank.

20. Fox Reports Credit Markets Beginning to Thaw January 15, 2009 The views expressed are those of Steve Holt and should not be attributed to One World Bank.

21. 30-year conventional mortgage rate hits 5.10% during week of January 2, 2009, the lowest since 1972 • Refinancing activity is up 137% from a year ago. • Mortgage applications are up 62% from a year ago • Home sales in California are up 83% from last year • Housing affordability, due to mortgage rates, income growth, and lower housing prices, has move up sharply and is not far from its early ‘70s high. The views expressed are those of Steve Holt and should not be attributed to One World Bank.

22. What does it take to get a loan in the current environment? The views expressed are those of Steve Holt and should not be attributed to One World Bank.

23. It's Best To . . . Be Prepared The views expressed are those of Steve Holt and should not be attributed to One World Bank.

24. Commercial Underwriting Guidelines The views expressed are those of Steve Holt and should not be attributed to One World Bank.

25. Commercial Underwriting Guidelines Ratios, Ratios And Even More Ratios The views expressed are those of Steve Holt and should not be attributed to One World Bank.

26. Commercial Underwriting Guidelines Debt Service Coverage Ratio Minimum 1.25 Preferred 1.50 + The views expressed are those of Steve Holt and should not be attributed to One World Bank.

27. Debt Service Coverage STRESS TEST INTEREST RATE +6% OCCUPANCY  25% RENTAL INCOME – 25% The views expressed are those of Steve Holt and should not be attributed to One World Bank.

28. Commercial Underwriting Guidelines Loan to Value The views expressed are those of Steve Holt and should not be attributed to One World Bank.

29. Loan to Value (LTV) MINIMUM 75% PREFERRED 70% OWNER FINANCED SECOND The views expressed are those of Steve Holt and should not be attributed to One World Bank.

30. Commercial Underwriting Guidelines Credit Worthiness The views expressed are those of Steve Holt and should not be attributed to One World Bank.

31. Credit Worthiness Personal credit of principals will be evaluated The views expressed are those of Steve Holt and should not be attributed to One World Bank.

32. Commercial Underwriting Guidelines Property Analysis The views expressed are those of Steve Holt and should not be attributed to One World Bank.

33. Key components of the analysis: • Quality, condition and age of the property • Locationand accessibility of the property • Termsand length of the leases • Quality oftenants • Operatinghistory– income and expenses • Occupancy/vacancy ratios • Fair Market Valueand Fair Market Rent, as determined by the appraisal, will be analyzed and compared to the property operating history. The views expressed are those of Steve Holt and should not be attributed to One World Bank.

34. The views expressed are those of Steve Holt and should not be attributed to One World Bank.

35. MAKE IT HAPPEN The views expressed are those of Steve Holt and should not be attributed to One World Bank.

36. “The next few months are among the most important in U.S. history. Because of the financial crisis, Barack Obama has the bi-partisan support to spend $1 trillion in stimulus. But we must make certain that every bailout dollar, which we’re borrowing from our kids’ future, is spent wisely. . . . . If we allow this money to be spent on pork, it will be the end of us.” - Thomas L. Friedman, New York Times, December 24, 2008 The views expressed are those of Steve Holt and should not be attributed to One World Bank.

37. Questions The views expressed are those of Steve Holt and should not be attributed to One World Bank.

38. We’re here to help. Your Bank – Your Partner OneWorld Bank The views expressed are those of Steve Holt and should not be attributed to One World Bank.

39. Karam AliPresidentCompass Investment GroupMicroVentureISAHouston Jubilee Investor’s GroupHouston, Texas INVESTING IN ALLIANCES