VORNADO REALTY TRUST 4 In 2003, Vornado’s Funds From Operations per share increased by 13.6% and FFO Adjusted for Comparability per share increased by 6.5%. EBITDA for each of our  business units increased for the year and each business unit (with the exception of Washington Office (3) ) had  handsome same store increases—all this performance in  a challenging market. And we could have generated more. Vornado has substan- tial unused financial capacity that could be realized either from borrowings or from recycling existing assets. We have $10s of millions, and in some instances as much as $100 million or more, of unrealized profits in dozens and dozens of our assets. As promised at our September 2003 investor conference, in February 2004, AmeriCold completed a $254 million financing, which was the source of Vornado’s repatriating $135 million of its investment in AmeriCold. But this financing did much more—it went a long way to demon- strate the value of this business. Think about it— AmeriCold now carries $800 million of debt (recourse  solely to various groups of its assets) at a weighted  average interest rate of 6.1%, or about $49 million  of annual interest expense, still leaving FFO of $64 million fr om actual cash rents. Mike and I believe that these  facts support a value for this investment that is greater than most of our investors and analysts carry. (5) (3) This decrease was caused by our exiting the third-party tenant representation business, and the effect of lower purchase price lease adjustment income and straight-lining of rent. (4) Together with a 25% development partner we built a 538 unit rental apartment tower on a wonderful site on the New Jersey Palisades adjacent to the George Washington Bridge. The total cost of this project, which is in the final stages of rent-up, was $144 million. We have contracted to sell this property for a clos- ing not later than third quarter 2004 for $222.5 million which will result in a gain to us of $70 million. (5) Vornado owns 60% of AmeriCold. All of the data in this paragraph is for 100% of AmeriCold, other than $135 million of its investment repatriated. It is a testament to Vornado’s scale and balance sheet strength that, since January 2003, we generated over  $1 billion internally from the capital side of our business (not including cash flow from operations). This was accom- plished while maintaining our credit rating (which we are committed to) and maintaining virtually the same credit ratios. Here is a list of cash proceeds by transaction: Financings Dispositions  $170 million 06/03 Financing of 770 Broadway for 5 years at LIBOR plus 1.05%. 200 million 11/03 Unsecured borrowing for 7 years at 4.75% 75 million 11/03 Distribution from Newkirk MLP funded from a $525 million refinancing  of a $225 million credit facility 150 million 02/04 Refinancing Two Penn Plaza’ old loan of $150 million at 7.08% with  $300 million for 7 years at 4.97% 135 million 02/04 Our 60% share of the net proceeds of AmeriCold’s $254 million financing  for 5 years at LIBOR plus 2.95% $292 million 10/03 Sale of Two Park Avenue, 965,000 square foot office building, resulting in a gain of $156 million of which $44 million ($.32 per shar e) was distributed to shareholders as a capital gains dividend 8 million 01/03 Sale of Baltimor and Hagerstown Shopping Centers resulting in a gain of $4.5 million 11/03 95 million 07/04 Pending sale of the Palisades Residential Apartment Complex  (4)