Consolidated Statements of Deficit Year ended December 31 (thousands of dollars) 2003 2002 De fi cit, beginning of year $ (85,757) $ (69,324) Net income for the year 44,026  29,634  Interest and accretion on equity component of convertible debentures (net of tax of $10,288; 2002  –  $10,632) (21,877) (17,159) Issuance of rights to acquire warrants  – (10,210) Dividends (30,507) (18,698) De fi cit, end of year $ (94,115) $ (85,757) See accompanying notes to the consolidated  fi nancial statements 50 First Capital Realty Annual Report 2003