Fiscal Year and Accomplishments

This fiscal year was truly a foundation –building year for Burke Properties, Inc. Fueled
by a continued strong economy and robust commercial real estate markets, we significantly
increased our revenues and earnings, strengthened our balance sheet, and put in place a solid
platform from which we can now aggressively implement our long-term growth strategy.

Among our fiscal accomplishments, we:

• achieved an almost six-fold increase in net income before non-recurring items, to

$10.6 million from $1 million a year ago;
• completely eliminated our long-term debt, which was $20.2 million last fiscal
year;
• improved our stockholders’ equity to $10.7 million from negative net worth of
$24.3 million;
• increased our management portfolio to more than 87 million square feet under
management at year-end from 60 million square feet; and
• increased our market capitalization to $275.3 million at June 30, from
$27.6 million at the same time last year.

To put the year in a broader perspective, this year marked the Company’s fifth consecutive year
of profitability after a difficult period in the beginning due to extremely challenging market
conditions. Rather than simply ride the wave of a recovering real estate marketplace and reap
short-term rewards, we worked diligently during the year to take steps that will position the
Company for continuous, long-term growth.

Strategy

Our strategy has been—and will continue to be—to build upon Burke Properties’ historic
strength in transaction services while strengthening and expanding our other service lines. More
than providing the Company with expanded sources of revenue, we anticipate that the recurring,
fee-based income generated by our non-transactional businesses will mitigate the impact of
market cycles on our results over the long term.
Figure 1 shows how our departments work together to strengthen and expand our service line.

REVIEW OF YEAR RESULTS

Financial

For the fiscal year ended June 30, total revenue increased 15% to $200.5 million from $174.3
million last year. Excluding non-recurring items, earnings before interest expense, income taxes,
depreciation and amortization – a widely used measure of a company’s ability to generate cash
flow from operations – rose 127% to $ 15.3 million from $ 5.2 million a year ago.

Excluding a deferred tax benefit and other non-recurring expenses and extraordinary items, net
income for the year was $10.6 million, an increase over the $1 million recorded last year. Fully
diluted earnings per share on this basis increased to $0.58 per fully diluted share, versus $1.8
million, or a loss of $0.08 per share, last year.

Non-recurring items in this fiscal year totaled $5.7 million. These include: a gain on the payoff
of debt, net of taxes, of $4.6 million; other non-recurring expenses of $1.8 million relating
primarily to the relocation of our corporate offices; and a deferred tax benefit of $3.1 million,
reflecting the benefit from our net operating loss carry-forward recognized in the fourth quarter
of this fiscal year.

The company has additional net operating losses as of June 30, which are available to offset
taxable income in future years.

We also significantly strengthened our balance sheet this year, in large part due to the completion
of two common stock transactions that raised aggregate gross proceeds of $18.75 million of
equity capital from two strategic investors. As a result, all the Company’s long-term debt was
retired, all convertible preferred stock was either retired or converted into common stock, and all
historical accrued but undeclared dividends on convertible preferred stock were forgiven.

Financial Overview

2007 2008
Cash Flow 5.2 15.3
Net Income 1.0 10.6
Total Revenue 174.3 200.5
 250

200

150 Cash Flow

100 Net Income

Total Revenue
50

0
2007 2008

ADVANTAGE

Organizational Structure

T his year, we put in place a new organizational structure that better reflects Burke
Properties is meeting the increased demand for the full spectrum of commercial real
estate services from a single provider. In addition to transaction services and management
services, we offer clients a variety of financial services and strategic services. All four service
areas are explained in the opening page of this report.

F or the fiscal year, revenue generated by Relocation Services was up nearly 18% as we
continued to take advantage of the market’s recovery to capture additional businesses. In
Commercial Services, we saw a substantial increase in management and leasing activity, adding
approximately 22 million square feet to our commercial portfolio. Our goal is to have an
additional 80 million square feet, a total of 102 million square feet, by end of the next fiscal year,
for our commercial portfolio.

W e also combined Jersey Real Estate Management, Inc., a wholly owned subsidiary, and
the Company’s property management and leasing services capabilities under one name:
Burke Properties, Inc. We believe the synergies created by this new structure should lead
to significant opportunities for cross-selling services and expanding into new geographic
markets.

New Relocation Team

Because revenue generated by corporate relocation services was up 18% last year, we decided to
create a new team that will focus solely on corporate relocation. This will enable us to meet the
needs of our existing relocation customers, as well as to position ourselves for future growth in
this lucrative market segment.

The members of the Relocation Services management team are all strong managers with a
proven track record of sales and customer service. We expect to see revenues increase
significantly this year thanks to their focus and experience.
Figure 2 shows the organizational chart for the new Relocation Services Management team.

Burke Properties

Jersey Real Estate

Managerial
Services

Strategic Services
Financial Services

Commercial Transaction
Relocation Services
Services Services

POSITIONING FOR LONG-TERM GROWTH

Investment
This year we launched several initiatives designed to help meet our goal of enhancing the quality
of the Company’s service lines and expanding and diversifying sources of revenue beyond
traditional commercial brokerage. These include:

An Investment in Client Service

We established the Corporate Relocation Group and Institutional Services Group to allow the
Company to respond to the increasing demand from major corporate and institutional clients for
expanded services through a single point of contact.

We expect these innovative relationship management groups to be key in helping the Company
establish more secure, long-term client relationships that can generate a stable, consistent steam
of revenue across all service lines.

We also launched a national affiliate program, which enables the Company to enter markets
where it previously did not have a formal presence and to better meet the multi-market needs of
national clients.

To date, the Company has formed alliances with 17 independent brokerage firms with a presence
in 20 markets, as noted on the inside back cover of this report. Our goal is for Burke
properties to have internal and affiliated offices in 150 markets within the next two years.

An Investment in Infrastructure
We are investing in technology systems designed to keep the Company competitive in future
years. Among them is a state-of-the-art, company-wide information sharing and research
network—an intranet—to be rolled out over the next 12 to 18 months, which will enable Burke
professionals across all offices to work smarter and more efficiently as a team, access the latest
market intelligence, and more fully address our clients’ needs.

Also we moved our corporate headquarters operation from New York City, New York to Kansas
City, Kansas, in the third quarter of the year—a feat that was accomplished without any business
interruption. By relocating to the Midwest, Burke’s senior management team is now in closer
proximity to a larger number of corporate and institutional clients, allowing us to stay in closer
touch with client needs and requirements. The relocation also enhances the Company’s ability to
provide support to Burke Properties’ offices around the country.

An Investment in Talent
In a consolidating industry, we have taken advantage of the opportunity to bring on board a
significant number of top professionals who will help drive growth in our core businesses. As a
service company, we believe people are our single most important asset.

OUTLOOK

Future Objectives
In the year ahead, we expect to build upon the momentum we achieved in this fiscal year by
continuing to implement our long-term growth strategy, which includes:

• developing long-term relationships with key corporations and the top institutional owners
of real estate nationwide;
• building a broader, more cohesive system of offices under the Burke Properties
name and expanding services for clients with needs in currently underserved markets;
• leveraging our historic strength in transaction services to cross-sell other Burke services
to generate recurring, fee-based income; and
• capitalizing on leasing opportunities where the Company is currently only providing
property management services, and vice versa.

To supplement internal growth, we plan to actively explore strategic

acquisition opportunities that enhance our ability to provide the highest level of
service to our clients.
Our strategy is to pursue acquisitions that have the potential to broaden the
Company’s geographic reach, expand the depth and breadth of our current service
line offerings, and add selected new services we believe are essential to servicing our clients
today and in the future.