The outstanding U.S. credit facilities increased from US$68.9 million at December 31, 2002 to US$83.9 million at December 31, 2003 due to net additional borrowing of US$15 million. The decrease in the U.S. exchange rate from $1.58 at December 31, 2002 to $1.30 at December 31, 2003 is offset by the increased borrowing of the U.S. credit facilities resulting in no change in the value of U.S. credit facilities measured in Canadian dollars. The Company attempts to manage its long-term debt by spreading maturity dates in order to mitigate against short-term volatility in the debt markets. At December 31, 2003, the Company had mortgages and credit facilities aggregating $69.5 million coming due in 2004, of which $7.9 million were fixed rate mortgages at an average interest rate of 5% and $22.2 million representing amortization of principal balances during the year. The remaining $39.4 million of floating rate mortgages and credit facilities maturing in 2004 are being used to primarily finance development and redevelopment activities. As these projects are completed, Management intends to arrange long- term permanent financing against these projects. The Company’s debt maturity profile is summarized as follows: In December 2003, the Company paid the $14.7 million outstanding principal balance of the 7.5% debentures on maturity. Prior to maturity, $0.2 million of the debentures were converted to 7.25% convertible debentures, and $0.3 million were purchased and cancelled by the Company. The following table summarizes the components of the Company’s convertible debentures. Convertible Debentures  Debentures Payable (thousands of dollars) Canada U.S. Total % Due 2004 $ 56,907 $ 12,634 $ 69,541 8.8 2005 47,653 6,416 54,069 6.9 2006 31,400 12,629 44,029 5.6 2007 63,126 77,131 140,257 17.8 2008 42,936 – 42,936 5.5 2009 36,565 – 36,565 4.7 2010 63,222 – 63,222 8.0 2011 43,806 – 43,806 5.6 2012 68,157 – 68,157 8.7 2013 113,236 – 113,236 14.4 Thereafter 110,483 – 110,483 14.0 $ 677,491 $ 108,810 $ 786,301 100.0 (thousands of dollars) 2003 2002 Interest Rate Principal Liability Equity Principal Liability Equity 8.50% $ – $ – $ – $ 57,441 $ 15,580 $ 43,557 7.875% 97,522 20,234 81,088 97,522 25,692 74,764 7.00% 99,999 – 102,153 99,999 – 101,314 7.25% 161,702 – 154,316 161,477 – 151,695 $ 359,223 $ 20,234 $ 337,557 $ 416,439 $ 41,272 $ 371,330 29 First Capital Realty Annual Report 2003