EXHIBIT 99.2
PDL, Inc. and Associates,  Limited Copartnership
Unaudited Financial Statements Year Ended December 31, 2004

PDL, INC. AND ASSOCIATES, LIMITED COPARTNERSHIP

BALANCE SHEET
DECEMBER 31, 2004 (UNAUDITED)

ASSETS
CASH AND CASH EQUIVALENTS	$	1,253,701
ACCOUNTS RECEIVABLE—Net of valuation allowance of $102,385		36,360
PROPERTY—Net of accumulated depreciation of $3,923,065		4,063,811
CASH IN ESCROW		711,579
PREPAID EXPENSES		114,504
DEFERRED MORTGAGE COSTS—
Net of accumulated amortization of $255,116		182,443
TOTAL	$	6,362,398
LIABILITIES AND PARTNERS’ DEFICIENCY
ACCOUNTS PAYABLE	$	137,834
ACCRUED EXPENSES		248,712
OTHER LIABILITIES		279,349
MORTGAGE PAYABLE		16,313,668
TOTAL LIABILITIES		16,979,563
PARTNERS’ DEFICIENCY		(10,617,165	)
TOTAL	$	6,362,398
See notes to financial statements.

PDL, INC. AND ASSOCIATES, LIMITED COPARTNERSHIP

STATEMENT OF OPERATIONS AND PARTNERS’ DEFICIENCY
YEAR ENDED DECEMBER 31, 2004 (UNAUDITED)

INCOME:
Rent	$	4,456,287
Interest		8,715
Other		65,543
Total income		4,530,545
EXPENSES:
Interest		1,232,065
Utilities		662,579
Repairs and maintenance		338,449
Depreciation		308,555
Real estate taxes, other taxes and fees		271,398
Insurance		215,025
Management fees		148,571
Security services		72,402
Rental expenses, including commissions		74,206
Salaries and wages		75,183
Amortization of mortgage costs		43,853
Provision for bad debts—Net of recoveries		16,674
Parking		23,040
Professional services		38,597
Other		42,896
Total expenses		3,563,493
NET INCOME		967,052
PARTNERS’ DEFICIENCY—Beginning of year		(10,864,217	)
DISTRIBUTIONS		(720,000	)
PARTNERS’ DEFICIENCY—End of year	$	(10,617,165	)
See notes to financial statements.

PDL, INC. AND ASSOCIATES, LIMITED COPARTNERSHIP

STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2004 (UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	967,052
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		352,408
Provision for bad debts		16,674
Changes in assets and liabilities:
Decrease in notes and accounts receivable		2,604
Decrease in prepaid expenses		8,123
Increase in cash in escrow		(90,212	)
Increase in accounts payable		22,467
Decrease in accrued expenses		(73,549	)
Decrease in other liabilities		(34,690	)
Net cash provided by operating activities		1,170,877
CASH FLOWS FROM INVESTING ACTIVITIES—
Building additions and improvements		(76,694	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Mortgage payments		(218,130	)
Distributions to partners		(720,000	)
Net cash used in financing activities		(938,130	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		156,053
CASH AND CASH EQUIVALENTS—Beginning of year		1,097,648
CASH AND CASH EQUIVALENTS—End of year	$	1,253,701
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
CASH PAID FOR INTEREST	$	1,233,004
See notes to financial statements.

PDL, INC. AND ASSOCIATES, LIMITED COPARTNERSHIP

NOTES TO FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2004  (UNAUDITED)

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General—PDL, Inc. and Associates, Limited Copartnership (the “Partnership”) was formed in June of 1990. The general partner is PDL, Inc., a wholly-owned subsidiary of Presidential Realty Corporation. The primary asset of the Partnership is an office building located in Hato Rey, Puerto Rico, known as Home Mortgage Plaza.

Income taxes—No provision has been made for income taxes because, as a partnership, such taxes are the responsibility of the individual partners.

Property—Property, principally a building, is stated at cost less accumulated depreciation. Depreciation is provided on the straight-line method over the estimated useful lives of the assets, generally ten to thirty-one years. Repairs and maintenance are charged to operations as incurred.

The Partnership reviews its investment in its property for possible impairment at least annually, and more frequently if circumstances warrant. Impairment is determined to exist when estimated amounts recoverable through future operations on an undiscounted basis is below the property’s carrying value. If the property is determined to be impaired, it would be written down to its estimated fair value.

Deferred mortgage costs—Deferred mortgage costs are amortized over the term of the mortgage using the interest method.

Use of estimates—The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Cash and cash equivalents—For the purposes of this statement, the Partnership considers liquid investments purchased having a maturity of three months or less to be cash equivalents.

Revenue recognition—The Partnership acts as a lessor under operating leases with rental revenue recognized on a straight line basis over the related lease term.

2. MORTGAGE PAYABLE

The building is subject to a mortgage payable dated April 1998 with an original principal balance of $17,500,000. The mortgage bears interest at a rate of 7.38% per annum until May 11, 2008, at which time the outstanding principal balance is expected to be repaid. However, the maturity date of the mortgage is May 11, 2028 and if the mortgage is not repaid in 2008, the interest rate will be increased by 2% and additional repayments will be required from the surplus cash flows from the operations of the property (after payment of operating expenses) which will be applied to the outstanding principal amount.

At December 31, 2004, the mortgage payable is due as follows:

2005	$	238,601
2006		257,079
2007		276,988
2008		15,541,000
	$	16,313,668

3. RELATED PARTY TRANSACTIONS

Included in the statement of operations and partners’ deficiency are $20,000 of general partner administrative fees.

4. MINIMUM FUTURE RENTAL INCOME

The Partnership is the lessor for various commercial tenants under non-cancelable operating leases.

The future non-cancelable lease payments are as follows:

2005	$	2,420,405
2006		1,007,969
2007		621,405
2008		226,206
2009		80,217
Thereafter		15,698
	$	4,371,900

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