VORNADO REALTY TRUST 15 Below is a reconciliation of Net Income to EBITDA befor e minority interest and gains on sale of real estate: Below is a reconciliation of Net Income to Funds from Operations: Below is a reconciliation of Hotel Pennsylvania Net Income to Hotel Pennsylvania EBITDA: Below is a reconciliation of the impact on Net Income and on Funds from Operations of the PTO vacating space it previously occupied and its subsequent lease up: APPENDIX ($ IN MILLIONS) 2003 2002 2001 2000 1999 1998 1997 Net Income 460.7 232.9 263.7 234.0 202.5 152.9 61.0 Interest and Debt Expense 296.1 305.9 266.8 260.6 226.3 164.5 54.4 Depreciation, Amortization and Income Taxes 281.1 257.7 188.9 167.3 143.5 104.2 32.0 Cumulative effect of change in accounting principal — 30.1 4.1 — — — — EBITDA 1,037.9 826.6 723.5 661.9 572.3 421.6 147.4 Gain on sale of real estate (161.8) — (15.5) (11.0) — (9.6) — Minority Interest 178.7 140.9 112.4 102.4 55.0 16.2 7.3 Less Office/Mart Minority interest (1.1) (5.7) (2.5) (2.0) — — — EBITDA before minority interest and gains  on sale of real estate 1,053.7 961.8 817.9 751.3 627.3 428.2 154.7 ($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) 2001 2000 1999 1998 1997 Net Income 263.7 234.0 202.5 152.9 61.0 Preferred Share Dividends (36.5) (38.7) (33.4) (21.7) (15.5) Net Income applicable to common shares 227.2 195.3 169.1 131.2 45.5 Depreciation and Amortization of Real Property 119.6 97.8 82.2 58.3 22.4 Net Gains on Sale of Real Estate and insurance settlements (15.5) (11.0) — (9.6) — Cumulative effect of change in accounting principal 4.1 — — — — Partially-owned entity adjustments: Depreciation and Amortization of real property 65.6 68.8 57.1 56.8 6.4 Net gains on sale of real estate  (6.3) — — — — Minority interest’s share of above adjustments (19.7) (19.2) (10.7) (4.6) (1.4) Series A Preferred Dividends 19.5 21.7 16.3 — — Funds from Operations 394.5 353.4 314.0 232.1 72.9 Adjustments for certain items that affect comparability: Write-off of non-core investments, net of  gains on the sales of non-real estate assets 14.7 — — — — Minority Interest  (1.8) — — — — Amortization of officer’s employment arrangement — — — — 22.9 Funds from Operations, Adjusted for Comparability 407.4 353.4 314.0 232.1 95.8 Funds from Operations per share: Total $ 3.96 $ 3.65 $ 3.37 $ 2.81 $ 1.27 Adjusted for Comparability $ 4.09 $ 3.65 $ 3.37 $ 2.81 $ 1.67 ($ IN MILLIONS) 2003 2000 1997 Net Income (Loss) (2.6) 9.8 5.3 Interest and Debt Expense — 10.4 3.9 Depreciation and Amortization 7.2 6.8 3.8 EBITDA 4.6 27.0 13.0 ($ IN MILLIONS) 2008 2007 2006 2005 2004 Net Income (Loss) 5.3 1.2 (12.2) (15.0) (2.4) Depreciation 8.2 7.7 7.0 .7 .9 Funds from Operations 13.5 8.9 (5.2) (14.3) (1.5)