MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Financing Activities Dividend Reinvestments Cash provided by financing activities for the year ended December 31, 2002 was $11,110,000 and cash used in financing activities for the year ended December 31, 2001 was $10,001,000. Cash provided by financing activities for the year ended December 31, 2002 primarily reflects: • $53,547,000 of proceeds received from notes payable incurred during the year; and • $14,574,000 of proceeds received from the issuance of common stock under the dividend reinvestment program and from the exercise of stock options, and from the issuance of convertible limited partnership interests in  the Operating Partnership;  • the repayment of borrowings on our notes payable totaling $24,624,000; • distributions made to common stockholders  and holders of convertible limited partnership  units in the Operating Partnership during the  year totaling $31,100,000; and • payments of $1,287,000 for refinancing the Company’s line of credit and extending the Washington Square construction loan. • $51,218,000 of proceeds received from notes payable incurred during the year; and • $11,976,000 of proceeds received from  the issuance of common stock issued under dividend reinvestment program;  • the repayment of borrowings on our notes payable totaling $42,851,000; and • distributions made to common stockholders  and holders of convertible limited partnership  units in the Operating Partnership during the  year totaling $30,327,000. which was partially offset by: Cash used in financing activities for the year ended December 31, 2001 primarily reflects: which was partially offset by: The Company expects to fulfill its long range requirements for capital resources in a variety  of ways, including undistributed cash flow from operations, secured or unsecured bank and institutional borrowings, private or public offerings  of debt or equity securities and proceeds from  the sales of properties. Borrowings may be at the Saul Centers, Operating Partnership or Subsidiary Partnership level, and securities offerings may include (subject to certain limitations) the issuance  of additional limited partnership interests in the Operating Partnership which can be converted into shares of Saul Centers common stock. As of December 31, 2002, the scheduled maturities of all debt for years ended December 31, are as follows: Management believes that the Company’s capital resources, including approximately $30,250,000  for general corporate use and $45,000,000 for qualified future acquisitions provided by the Company’s revolving line of credit, which was available for borrowing as of December 31, 2002, will be sufficient to meet its liquidity needs for the foreseeable future. In December 1995, the Company established a Dividend Reinvestment and Stock Purchase Plan  (the “Plan”), to allow its stockholders and holders  of limited partnership interests an opportunity to buy additional shares of common stock by reinvesting  all or a portion of their dividends or distributions. The Plan provides for investing in newly issued shares of common stock at a 3% discount from market price without payment of any brokerage commissions, service charges or other expenses. All expenses of the Plan are paid by the Company. The Company issued 556,872 and 645,423 shares under the Plan at a weighted average discounted price of $22.24 and $17.99 per share during the years ended December 31, 2002 and 2001, respectively. Additionally, the Operating Partnership issued  3,110 limited partnership units under a dividend reinvestment plan mirroring the Plan at a weighted average discounted price of $23.18 per unit  during the year ended December 31, 2002. 32 Debt Maturity Schedule (In thousands) 2003* $ 46,940 2004 23,988 2005 54,720 2006 8,635 2007 9,357 Thereafter 237,103 Total $ 380,743 * A total of $39,374 of the 2003 maturities was refinanced in January 2003.