VORNADO REALTY TRUST 12 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS December 31, 2001 Included in EBITDA are gains on sale of real estate of $15,495, of which and $12,445 and $3,050 relate to the Office and Retail segments, respectively. (1) EBITDA should not be considered a substitute for net income. EBITDA may not be comparable to similarly titled measures employed by other companies.  (2) Interest and debt expense and depreciation and amortization included in the reconciliation of net income to EBITDA include amounts which are netted in income from partially-owned entities in order to present the income from partially-owned entities on an EBITDA basis. Temperature Merchandise Controlled (AMOUNTS IN THOUSANDS) Total Office Retail Mart Logistics Other (3) Property rentals $ 769,780 $399,459 $ 116,710 $191,909 $ — $ 61,702 Straight-line rents: Contractual rent increases 28,964 24,012 (45) 4,997 — — Amortization of free rent 14,345 11,396 2,187 762 — — Amortization of acquired below market  leases, net — — — — — — Total rentals 813,089 434,867 118,852 197,668 — 61,702 Expense reimbursements 129,013 64,097 48,708 13,801 — 2,407 Fee and other income: Tenant cleaning fees — — — — — — Management and leasing fees 1,472 1,404 — 68 — — Other 8,587 1,848 1,076 3,256 — 2,407 Total revenues 952,161 502,216 168,636 214,793 — 66,516 Operating expenses 385,449 205,408 55,200 83,107 — 41,734 Depreciation and amortization 120,614 68,726 14,218 25,397 — 12,273 General and administrative 71,716 11,569 3,572 18,081 — 38,494 Costs of acquisitions not  consummated 5,223 — — — — 5,223 Total expenses 583,002 285,703 72,990 126,585 — 97,724 Operating income 369,159 216,513 95,646 88,208 — (31,208) Income applicable to Alexander’s 25,718 — — — — 25,718 Income from partially-owned entities 80,612 32,746 1,914 149 17,447 28,356 Interest and other investment income 54,385 6,866 608 2,045 — 44,866 Interest and debt expense (167,430) (49,021) (55,358) (33,354) — (29,697) Net (loss) gain on disposition of  wholly-owned and partially-owned  assets other than real estate (8,070) — — 160 — (8,230) Minority interest (112,363) (2,466) — — — (109,897) Income before gains on sales of  real estate, discontinued operations  and cumulative effect of change  in accounting principle 242,011 204,638 42,810 57,208 17,447 (80,092) Gains on sale of real estate 15,495 12,445 3,050 — — — Discontinued operations 10,342 9,265 1,077 — — — Cumulative effect of change in  accounting principle (4,110) — — — — (4,110) Net income 263,738 226,348 46,937 57,208 17,447 (84,202) Cumulative effect of change in  accounting principle 4,110 — — — — 4,110 Interest and debt expense (2) 266,784 92,410 57,915 33,354 26,459 56,646 Depreciation and amortization (2) 188,859 91,085 18,957 25,397 33,815 19,605 EBITDA (1) $ 723,491 $409,843 $ 123,809 $115,959 $ 77,721 $ (3,841)