Focused Acquisitions Build Portfolio Quality Focused Acquisition Strategy We take a highly disciplined approach to increasing the size of our property portfolio. We acquire well-located shopping centres in growing urban markets that are anchored primarily by supermarkets and/or drug stores. We seek acquisitions that are both operationally and financially accretive to the Company, looking for benefits from economies of scale, operating synergies and the strengthening of our competitive position in all our markets. During 2003, we invested $253 million in the acquisition of 14 income-producing properties and increasing our interests in four existing properties, adding a total of approximately 1.7 million square feet of gross leasable area to our Canadian portfolio. Four key acquisitions are highlighted below. Meadowvale Town Centre is centrally located in a growing residential area of Mississauga, Ontario situated on 40 acres of land with easy access and convenient parking. Upon full completion, the property will be a 382,000 square foot community shopping centre anchored by a Dominion supermarket and a Canadian Tire store. Additional tenants in operation include Shoppers Drug Mart, LCBO, Bank of Montreal, TD Canada Trust, CIBC, The Beer Store, McDonald’s, Tim Hortons, Blockbuster Video, Radio Shack and a Shell Gas Bar. These tenants provide a variety of retail and community services and in addition, the draw and traffic is greatly enhanced by the City of Mississauga Library, who is a tenant, as well as a bus transfer station at the back of the centre. National and regional tenants, including a gym and the tenants listed above, are expected to occupy approximately 283,000 square feet of space. “The Meadowvale Town Centre, located in the growing city of Mississauga, Ontario, was both financially and operationally accretive for our portfolio and enhances our presence in the Greater Toronto Area.” Derek Hull, Director of Acquisition and Development Gloucester City Centre is a 337,000 square foot community shopping centre well- located in Ottawa, Ontario. The centre is anchored by a new 127,000 square foot Loblaws supermarket and a newly renovated 98,000 square foot Zellers, and also, Pharma Plus, Scotiabank, CIBC, RadioShack and several other national tenants.  “This acquisition is both financially and operationally accretive and provides long term sustainable cash flow. The Ottawa region is a very attractive, growing area and continues to be one of our strategic markets.” Francois Le Rouzes, Director of Acquisition and Development The transaction to acquire the Tuscany Market and McKenzie Towne Centre shopping centres in Calgary, Alberta is in line with our strategy to enhance our presence in • Neighbourhood and community shopping centres • National anchor  tenants that provide basic necessities • 86 of 94 properties are supermarket or drug store anchored 10 First Capital Realty Annual Report 2003