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Objectives are measured by results.

Embassy Properties' approach to property management is to provide the best services possible to our tenants, while at the same time enhancing the value of our owners' real estate assets. Our management philosophy is the belief that a centralized management system is most efficient. All essential support functions such as financial, personnel, marketing and legal, are provided at the corporate level. This insures managers at disparate locations receive the same expert advice on crucial matters, operating systems remain standardized, and that management can be constantly apprised of property matters. All of our property managers have been leasing agents or maintenance personnel and have been involved in the operation of properties from the ground up. The corporate office provides human resources support and operations, allowing property personnel to dedicate themselves to their properties. On-site personnel walk their property on a routine basis and inspection reports are maintained. All items requiring attention are discussed at monthly meetings with the owner of the property, the Director of Property Management and a representative of the corporate office. These "things to do" are constantly prioritized and updates are provided at each meeting, keeping the owner completely informed. Financial reports, occupancy and traffic reports are also presented for review and comment. This is a very "hands on" method of management, and it represents the essence of what we at Embassy believe is required of a good manager.

The maintenance of all properties is handled on-site. Whenever possible, individual maintenance persons are allocated between several properties, in order to reduce cost. Embassy strives to employ the most qualified individuals for each position, and also provides free educational assistance to all employees who wish to improve their job skills. This in-house educational upgrading is especially important to maintenance personnel.

The real estate division of Embassy focuses primarily on the sale and leasing of properties owned or controlled by Embassy or its affiliates. All property managers and leasing agents are licensed in the state in which their property is located, and all brokers and agents attend continuing education classes on a regular basis.

The primary focus of Embassy's Real Estate Brokerage Division is the leasing of commercial and office properties and developments managed by Embassy. The current average occupancy of all commercial and office properties is over 95%. Embassy establishes relationships with other brokers who specialize in the brokerage activity required too maintain optimum occupancy. The company currently manages and leases over 150,000 square feet of commercial and office space.

Embassy is a member in good standing with the Kansas City, Missouri Chamber of Commerce, the Johnson County (Kansas) Board of Realtors, the Kansas Board of Realtors, the National Association of Realtors and the Kansas City Apartment Association.

One of the most important facets of property and hotel management is the ability to accurately account for all income and expenses in a timely manner. Embassy retains the services of a professional CPA firm to provide accounting services for all properties and hotels. This service is paid for entirely by Embassy, and we believe this third-party participation in the maintenance of bank accounts, accounts receivable and payable is a benefit to our outside property owners. AAC and Embassy utilize Yardi software for all accounting functions.

Operating statements for each property are generated by the 15th of each month for the prior months' activity. All properties are computerized with the latest technology and are able to transmit all financial information directly to AAC for review and input. Accounts payable and a summary of cash management are reviewed weekly by the property owner and items to be paid are approved directly by the owner.

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