Management’s Discussion and Analysis  continued TOTAL RETURN The Company’s dividend history, annual dividend yield on average share price, and the total annual return including capital appreciation are outlined below for the previous three years. In 2003, the Company’s return to shareholders amounted to an 8.2% dividend yield on the annual average closing price and a 40.2% total return to shareholders. Total return is calculated as follows: (1) Includes $1.07 for distribution of share rights In 2003, net new leasing, including development and redevelopment, totalled 581,000 square feet of space compared to 245,000 square feet in 2002. This net new leasing will generate additional annual minimum rent of approximately $6.7 million compared with $4.6 million in 2002. Lease renewals on 520,000 square feet were completed in 2003, as compared to 302,000 square feet of space in 2002. The 2003 renewals will generate additional annual minimum rent of $0.24 million or $0.46 per square foot. With the impact of the leasing during the year, acquisitions and development, and increases from contractual rent steps, the average rate per occupied square foot increased to $12.66 compared with $11.92 at December 31, 2003. The occupancy level of the portfolio, including properties currently under redevelopment, was 93.1% of total gross leasable area as at December 31, 2003 as compared with 91.7% at December 31, 2002. Management expects that the completion of redevelopment and committed leasing will result in higher occupancy levels in 2004. The Company acquired 1.6 million square feet in 14 income-producing shopping centres in 2003 for $242 million. Of these properties, ten were anchored by supermarkets and two were anchored by drug stores. In addition, nine of the supermarket anchored centres also included drug stores as additional anchors. 18 First Capital Realty Annual Report 2003 2003 2002 2001 Dividends per common share $ 1.14 $ 1.09 $ 0.99 Annual average closing price $ 13.95 $ 12.27 $ 10.47 Dividend yield on average closing price 8.2% 8.9% 9.5% 2003 2002 2001 Open common share price $ 12.15 $ 12.95 $ 8.90 Close common share price $ 15.89 $ 12.15 $ 12.95 Capital appreciation $ 3.74 $ 0.27 (1) $ 4.05 Capital appreciation yield 30.8% 2.1% 45.5% Dividend yield on opening common share price 9.4% 8.4% 11.1% Total return 40.2% 10.5% 56.6% OPERATIONS Leasing  2003 Acquisitions