A Message from our GM

Spring has sprung and so has our tourist population. Spring break brought some of the biggest crowds we have seen
at this time of year, and we were able to squeak by with a tentative Town approval on the dune walkway and
bathroom renovation in time for a ribbon cutting on March 25th. The cutting honor was a well-deserved combo of ARB
Chairman Joe Strivieri and Chris Bracken the Sonesta  Director of Sales and Marketing who both helped with
contract supervision and site logistics to make this project happen.

We are waiting for the turtle sensitive lights for the walkway  which are coming from Hawaii, and if you have had to buy
any appliances lately you can probably appreciate that things are not arriving when anticipated. As soon as they
arrive, however, we will work with the Town on final approval and punch out the project.

We have finished the first quarter of the year and given the Board of Directors good news on the first three months of
operation. We are within budget, have collected all but 1.8% of the entire annual assessment and are anticipating
another great year in real estate. Karl Sneed’s last numbers for the real estate market indicated that
properties sold this year were on the market less than 12 days before they sold. I can barely reach our attorney Bob
Deeb, who handles a great deal of real estate and POA work, because he is having multiple closings per day.

We are facing another year of challenges in our insurance renewal for the property, however. Similar to last year, we
had a dramatic increase in our liability coverage. We are still involved in two cases in Shipyard; and until they are
settled, our markets remained minimal for renewal. There is also a tightening of the market in resort/residential
communities due to the exposure potential with all the resort guests so the news for SPOA is good except for our
insurance challenges.

The RBC Heritage returned to somewhat normal conditions with limited attendance but looking much more normal
than last year. The businesses are beginning to recover as are the restaurants, and we anticipate a big summer of
guests and a continued real estate bonanza. I guess what we have always known is that Hilton Head is a great place
to visit and live, and the rest of the world is starting to embrace that as well.