Colorado Real Estate

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Colorado Real Estate Investment Co.
Company Update May 2008
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Colorado Real Estate Investment Co.
2007 Continued Focus on Occupancy

• CREICO Occupancy Trend
• 2003 Net Occupancy Loss of 109 (-1.9)
• 2004 Net Occupancy Loss of 40 (-0.7)
• 2005 Net Occupancy Gain of 10 (0.2)
• 2006 Net Occupancy Gain of 60 (0.9)
• 2007 Net Occupancy Gain of 30 (0.6)
• Pelican
• 237 loans - 7.21 million
• 321 sales including Pelican, cash deals, and
  COH sales

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Colorado Real Estate Investment Co.
Top Ten Accomplishments of 2007 Part I

• Increased Net Operating Income by 9 or almost
  800,000
• Increased Net Economic Occupancy from 80 to 81
  portfolio wide
• Net Economic Occupancy in the Rock Springs,
  Wyoming properties alone increased by 27!!!
• Rehabilitated the town of Farson, Wyoming, and
  began redevelopment
• Acquired and took over four properties in
  Colorado, New Mexico and Wyoming
• Pelican Finance
• Engaged consumer lending expert with over 20
  years experience
• Originated 237 loans totaling 7.21 million
• Raised 5.0 million in bank financing
• Raised 3.5 million in new private equity
  financing

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Colorado Real Estate Investment Co.
Top Ten Accomplishments of 2007 Part II

• Introduced a new generation of community web
  sites
• Introduced the CREICO Home Inventory System
  (CRHIS) to manage the 265 homes held for sale in
  inventory
• Developed Discount Reports for Dealers, Abandoned
  Homes, and Demolished Homes
• Developed a prototype water cost recovery program
  in Rock Springs that generated over 11,000 in
  cost savings at those properties in the 4th
  quarter of 2007 alone
• Implemented the Home Run Program through which
  residents can lock in rental rates to fully pay
  for their homes in seven years and the
  Rent-to-Own Program through which residents can
  purchase their homes after one year of successful
  leasing.

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Colorado Real Estate Investment Co.
The Numbers
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Colorado Real Estate Investment Co.
Portfolio Net Operating Income (comparable
properties only) ( in millions)
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Colorado Real Estate Investment Co.
Distributions ( in millions)
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Colorado Real Estate Investment Co.
Top Ten Goals of 2008

• Create cash flow budget and monthly cash flow
  comparison report
• Market and sell the Nebraska portfolio,
  Darlington, Woodview and Hi-Land Village
• Increase NOI by 10
• Increase economic occupancy from 76 to 83
• Develop fully the CRHIS program including
  web-based inventory
• Establish a viable home financing relationship
  with 21st Mortgage
• Fix interest rate on 7.5 million of credit with
  Pelican
• Refinance Valley Ridge, Skyline, Kingswood,
  Windgate and Dream Island mortgages
• Launch multi-media advertising campaign
• Develop RV park in Farson and redevelop Foothills

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Colorado Real Estate Investment Co.
Summary

• Our Mission
• 2007 was, in many ways, a great year.
• Acquire 700 new home site
• Sell Darlington Place
• Secure one new fee management account
• Increase CREICO portfolio NOI by 10
• Achieve 82 NEO on portfolio
• Redevelop Farson, Wyoming
• Redevelop at least 100 home sites at Foothills
• Originate 300 loans and an annual loan volume of
  6.0 million
• Find one or more alternative sources of capital
  for Pelican
• Complete new AutoRIF and move-out RIF with
  security deposit programs and develop CRHIS home
  inventory program

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Colorado Real Estate Investment Co.
Summary

• In 2007, we also expanded the areas of retail
  sales and financing, and construction and
  property management
• We experienced tremendous growth and success in
  Wyoming, as we expected when we originally began
  the redevelopment and acquisition projects there
  in 2004
• Most of the remainder of the properties turned in
  solid and stable performance
• There is a saying, however, that nothing worth
  doing is ever easy
• A few areas of our business became more difficult
  in 2007 particularly home sales and financing in
  Texas
• Nevertheless, we as a team have risen to the
  challenge and have persevered. The challenges
  have caused us to improve
• We believe you, our team of dedicated
  professionals, are the best in the business
• We enjoy tremendous financial strength because
  the hard work and dedication of the Vukovich
  family and of those who have come before us to
  build a portfolio of 47 properties valued at over
  175 million
• Finally, the portfolio is large and
  geographically diversified so that when one
  region struggles, the rest of the portfolio
  balances out the overall performance

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Colorado Real Estate Investment Co.
Summary

• 2008 holds great promise.
• The Wyoming properties continue to generate
  tremendous results
• The remaining redevelopment projects are drawing
  increasingly favorable attention and demand
• We believe we have overcome the difficulties and
  challenges in Texas and have stabilized key areas
  on which we can build the future success.
• The rest of the regions in the portfolio are
  continuing to deliver solid and stable results
• Nothing worth doing is ever easy. We all have
  much to celebrate about 2007 and the future. We
  also have a number of challenges and
  opportunities ahead of us to work out.
• We are confident that together we will fulfill
  Our Mission!

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Colorado Real Estate Investment Co.
Company Update May 2008
ONWARD AND UPWARD!