CONSOLIDATED BALANCE SHEETS VORNADO REALTY TRUST 47 CONSOLIDATED BALANCE SHEETS December 31, See notes to consolidated financial statements. (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) 2003 2002 ASSETS Real estate, at cost: Land $ 1,503,965 $1,434,272 Buildings and improvements 6,038,275 5,694,535 Development costs and construction in progress 133,915 88,547 Leasehold improvements and equipment 72,297 65,297 Total 7,748,452 7,282,651 Less accumulated depreciation and amortization (869,849) (702,686) Real estate, net 6,878,603 6,579,965 Cash and cash equivalents, including U.S. government obligations under repurchase agreements of $30,310 and $33,393 320,542 208,200 Escrow deposits and restricted cash 161,833 263,125 Marketable securities 81,491 42,525 Investments and advances to partially-owned entities, including  Alexander’s of $207,872 and $193,879  900,600 961,126 Due from officers 19,628 20,643 Accounts receivable, net of allowance for doubtful accounts of $15,246 and $13,887 83,913 65,754 Notes and mortgage loans receivable 285,965 86,581 Receivable arising from the straight-lining of rents, net of allowance of $2,830 and $4,071 267,848 228,548 Other assets 376,801 290,044 Assets related to discontinued operations 141,704 271,668 $ 9,518,928 $9,018,179 LIABILITIES AND SHAREHOLDERS’ EQUITY Notes and mortgages payable $ 3,339,365 $3,437,720 Senior Unsecured Notes due 2007 and 2010 725,020 533,600 Accounts payable and accrued expenses 226,100 202,756 Officers compensation payable 23,349 16,997 Deferred credit 74,253 59,362 Other liabilities 11,982 3,030 Liabilities related to discontinued operations 120,000 100,000 Total liabilities 4,520,069 4,353,465 Minority interest of unitholders in the Operating Partnership 1,921,286 2,037,358 Commitments and contingencies Shareholders’ equity: Preferred shares of beneficial interest: no par value per share; authorized 70,000,000 shares; Series A: liquidation preference $50.00 per share; issued and outstanding 360,705 and 5,520,435 shares 18,039 72,535 Series B: liquidation preference $25.00 per share; issued and outstanding 3,400,000 shares 81,805 81,805 Series C: liquidation preference $25.00 per share; issued and outstanding 4,600,000 shares 111,148 111,148 Series D-10: liquidation preference $25.00 per share; issued and outstanding  1,600,000 shares 40,000 — Common shares of beneficial interest: $.04 par value per share; authorized, 200,000,000 shares; issued and outstanding 118,247,944 and 108,629,736 shares 4,739 4,320 Additional capital 2,827,789 2,481,414 Distributions in excess of net income (57,618) (169,629) 3,025,902 2,581,593 Deferred compensation shares earned but not yet delivered 70,610 66,660 Deferred compensation shares issued but not yet earned (7,295) (2,629) Accumulated other comprehensive loss (6,940) (13,564) Due from officers for purchase of common shares of beneficial interest (4,704) (4,704) Total shareholders’ equity 3,077,573 2,627,356 $ 9,518,928 $ 9,018,179