2004 - ANOTHER SUCCESSFUL YEAR IN REVIEW

Nearing the close of 2004, it is evident that this has been an exceptional year for ACRON. Growth and financial strength abound with the acquisitions of three new properties in the Dallas, Texas area. With the purchase of these properties, Preston North and Valley Centre, both prestigious office buildings, and Town Center Cedar Hill a successful retail center, ACRON has added an additional 182,621 SF to its property portfolio.

INVESTMENTS - TULSA, OKLAHOMA
With the extension of the Indian Depreciation Act, otherwise referred to as the cost recovery act, through 2005, Tulsa continues to be a viable city for lucrative investments. Despite findings in the CIRE, Commercial Investment Real Estate magazine issued by the CCIM Institute, indicating a decline in occupancy in the Tulsa area from 3% to 4% over last year, the Tulsa Market remains strong for ACRON’s investors with an average occupancy rate of 96.4%. And, although the market is tight, we have identified a project in its developmental stage and anticipate a closing in late 2005.

We are excited to announce that Harvard Gardens is now 100% occupied and with the renewal of Trase Miller through 2007, 16 Centre Park remains 100% occupied as well.

Meanwhile, renovations of the headquarters for ACRON’s US corporate office at Boston Center in Tulsa, Oklahoma have been completed. With additional updates throughout the center anticipated to be complete by November 30th, this property, located just outside the Central Business District of Tulsa, continues to be an advantageous investment and an attractive alternative for the would be down town tenant with out the down town hassle.

INVESTMENTS - DALLAS, TEXAS
Leading the property portfolio with a grand total of 359,913 rentable SF, the Dallas properties are generating a generous cash flow retaining an overall average occupancy rate of 92%.

INVESTMENTS – TRIPLE NET
A successful refinance of ACRON Daytona, a Food Lion Store located in Ormond Beach, Florida, produced significant loan proceeds thus generating a healthy return to investors. ACRON USA Fonds Winn-Dixie, L.P., located in Socastee, SC, has recently been sublet by SaveMore and continues to serve the local community as a grocery store. ACRON USA Fonds 2500 Penn located in Oklahoma City, Oklahoma, has also been leased to a Buy-For-Less, a locally owned, successful, retail grocer.

NATIONAL BUSINESS NEWS
Wall Street welcomed the end of the election and President Bush’s re-election as evidenced by a reported daily jump in the DOW of more than 100 points for a 1% gain; oil prices soared and gold prices rose. The NASDAQ closed at 2,004 above the market where previous rallies stalled. With uncertainty behind them, investors appear to be pleased that uncertainty no longer surrounds the leadership at the White House. As reported in Today’s Money Scope aired on November 4th, “the fact that Mr. Bush was re-elected is an added incentive because investors are familiar with his regulatory policies and know what to expect over the next 4 years.”

On the forefront, the economy looks good. While Mr. Bush lays out an ambitious agenda for his second term, he promises to keep taxes down, expand health care, reform Social Security and support the Oil and Coal industries.

OUTLOOK FOR THE FUTURE
With an overall average retention rate of 94%, ACRON has accelerated to a Leadership position within the commercial real estate industry. By enlisting the assistance of top leasing producers such as CB Richard Ellis and Holliday Fenoglio Fowler, L.P., ACRON offers aggressive lease rates, leasing incentives, and excellence in customer service and building maintenance. ACRON looks to the future with aspirations of continued success and the prospect of tremendous growth.

We are poised for the future and as always, our team stands ready to assist our clients with informational needs, compiling data, tax research and the formulation of prudent investment strategies. Continue to visit our site as it will be modified from time to time to reflect current conditions including new listing available. We hope you will benefit from the information and insight provided and will take advantage of new and exciting opportunities, which lie ahead.


Greg W. Wilson
President, ACRON (USA)